3D Systems Surprise, A Secondary Stock Offering

Technology

Published: May 27, 2014 4:31 pm

3D Systems Corp. (NYSE: DDD) is likely to see its shares come under pressure on news that, concurrent with an effective shelf registration statement, it will offer 5,950,000 shares of its common stock in public secondary offering. On the surface, this secondary looks small enough that the market will easily absorb. The reality is that it is coming at a time after shares have only just started to recover, after losing half of their value.

This offering is close to $335 million prior to discounts, price adjustments, and the like. 3D Systems has a $5.86 billion market cap, and the 5.95 million shares compares to an average daily volume of 4.857 million shares.

3D Systems said that it intends to use the net proceeds from this offering to finance future acquisitions, and for working capital, and general corporate purposes.

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Canaccord Genuity is acting as the underwriter for the offering. 3D Systems has also granted these underwriters an option for 30 days to purchase up to 892,500 additional shares of common stock.

3D Systems’ shares closed at $56.64 on Tuesday against a 52-week trading range of $41.05 to $97.28. The consensus analyst price target prior to the effect of this offering was $70.63.

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