The DIY website platform said that the offering could reach $86.3 million.
DIY website platform Wix.com Ltd. (Nasdaq: WIX) has filed with the US Securities and Exchange Commission (SEC) a registration statement for a secondary offering of shares by the company as well as an offer to sell by shareholders. Wix’s share price has risen 56% since its IPO five months ago.
Wix is trying to cash in on the thriving primary market. It is following Israeli nutritional supplements company Enzymotec Ltd. (Nasdaq: ENZY). However, unlike Enzymotec, Wix has not yet proven itself in terms of its profit and loss statement, or in its share price. It has not yet translated its strong revenue growth into profits: its fourth quarter revenue was $24.9 million for the fourth quarter of 2013, up 88% on the corresponding quarter of 2012; and its non-GAAP net loss widened to $7 million from $3 million.
This does not mean that Wix will not go ahead with the secondary offering, or in the least bad scenario (for the company and its shareholders, but not the public), price it at a deep discount on the current share price.
Wix’s share price fell 3.3% on Friday, following the announcement the day before, to $25.68, giving a market cap of $962 million.
Published by Globes [online], Israel business news – www.globes-online.com