Seeking Alpha

AudioCodes falls after pricing 3.5M-share offering

  • AudioCodes (AUDC -6%) is selling 3.5M shares at $8, 11% below Tuesday's closing price of $9.02. Underwriters have a 525K-share overallotment option. (PR)
  • Gross proceeds are set to total $28M. The VoIP hardware/software provider only says it will use the proceeds for "general corporate purposes, which may include, among other things, working capital requirements and future acquisitions."
  • AudioCodes had $62.2M in cash/investments at the end of 2013, and $14.8M in debt.
Comments (2)
  • Bob 88
    , contributor
    Comments (50) | Send Message
     
    Can anyone explain why this stock offering is so much below the market share price? I cannot make sense out of it.
    5 Mar 2014, 06:13 PM Reply Like
  • Josh Franklin
    , contributor
    Comments (1057) | Send Message
     
    Because some large funds want to buy in and continue to add more shares. Give it 30 - 45 trading days.
    6 Mar 2014, 04:07 AM Reply Like
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