Workday announces 6M-share offering, shares -3% AH

|About: Workday (WDAY)|By:, SA News Editor

Just seven months after selling $530M worth of convertible debt, Workday (WDAY) is selling 6M shares (current value of $510M) in a follow-on offering. Underwriters will have a 900K-share overallotment option. (PR)

The cloud HR/ERP software vendor says it will use the proceeds for "working capital and other general corporate purposes, including potential acquisitions of businesses, technologies, or other assets." Workday had $1.3B in cash/investments as of Oct. 31, and (thanks to its convertible debt sales) $478M in debt.

News of the offering comes on a day when Workday made new highs in morning trading, before later retreating.