The insurance services software company will use the proceeds for corporate purposes including acquisitions and investments.
Insurance services software developer Sapiens International NV (Nasdaq:SPNS; TASE: SPNS) has commenced an offering of 5, 650, 000 shares, and has given the underwriters an over-allotments option to buy up to an additional 847, 500 shares. At Sapiens’ closing price of $6.65 on Nasdaq on Wednesday, it will raise a gross $38 million, and if the option is exercised in full, it will raise $43 million. Sapiens is controlled by Formula Systems Ltd. (Nasdaq: FORTY; TASE: FORT), with a 57.1% stake, before the secondary offering.
Sapiens had $30 million in cash at the end of September. It plans to use the proceeds for general corporate purposes, which may include acquisitions or investments in complementary companies, products or technologies, additions to working capital, capital expenditures, and other investments.
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at firstname.lastname@example.org.
In addition to raising capital, the secondary offering could have another positive effect on Sapiens: increasing the liquidity of its share, a longstanding problem of the company because of the small public stake in it. The offering may also result in analyst coverage by the investment banks that are underwriting the offering, a common practice after public offerings.
Published by www.globes-online.com