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FireEye announces $700M stock offering, shares fall

  • FireEye (FEYE -5.1%) plans to sell up to $700M worth of shares, both to raise fresh capital and to "facilitate an orderly distribution of shares" ahead of the company's March 19 lockup expiration.
  • No details have been given regarding how many shares will be sold, or how many will be issued by FireEye itself. VC firms Sequoia Capital and Norwest Venture Partners respectively own 15.7% and 15.1% stakes, and founder/CTO Ashar Aziz a 7.9% stake.
  • FireEye's giant post-IPO gains could motivate some major shareholders to take profits.
  • Prospectus
Comments (5)
  • Ta0
    , contributor
    Comments (241) | Send Message
     
    I don't get how this affects stock price. I'm sure that it should in some meaningful way, but I'm not sure how or why. Hoping some kind soul can explain what "$700M stock offering" means to the company and to share holders. Why are they doing it? Aren't they already a public company, offering shares of stock?
    3 Feb, 08:52 PM Reply Like
  • Brian Williams
    , contributor
    Comments (18) | Send Message
     
    Tao it's a way for insiders holding shares to dump them into the float (public hands) and also for the company to sell treasury stock and raise cash to continue operations.

     

    This company has gotten way ahead of its' reality at current share price.. I'm not surprised it's selling off and I wouldn't be surprised to see it sub $60 either.
    4 Feb, 05:31 PM Reply Like
  • Ta0
    , contributor
    Comments (241) | Send Message
     
    Ah I see. Thank you for your elucidation. Much appreciate your insight.
    4 Feb, 06:16 PM Reply Like
  • vpg999
    , contributor
    Comments (121) | Send Message
     
    they might have another acquisition in mind as well
    11 Feb, 05:27 PM Reply Like
  • Ta0
    , contributor
    Comments (241) | Send Message
     
    Hmmm...that will do something wild to their stock price...WILD!
    11 Feb, 05:29 PM Reply Like
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