2.75 million new shares. Talend will not receive any proceeds from this offering.
2.75 million represents approx a 9% dilution. Stock is down 6%.
What gives? Can someone explain the mechanics of all this?
Doesn’t make sense. I assume this is a non-dilutive public offering so directors/insiders can sell their shares and diversify. Which means the price drop itself is completely illogical and an opportunity?
Cheers
I assume this is a non-dilutive public offering so directors/insiders can sell their shares and diversify. Which means the price drop itself is completely illogical and an opportunity?
From my understanding, your assumption is spot-on. The American Depository Shares would replace the French shares held by insiders or whoever. I would think this would actually be a good thing for us as it would increase the liquidity of the NASDAQ TLND shares.
See mine as a voice of tentative confirmation. I think we’re both on the right track with this, but I’m certainly no expert in these public offerings.
Bear
who would add here if he wanted to increase his Talend position, but is pretty happy with the size of it as-is.
billyfreezr,
I can’t explain it but your and Bear’s explanations make sense to me and I’m taking it as an opportunity. So I added a little.
John
It’s totally non-dilutive. Venture Capitalists are doing what venture capitalists do. They sell when they have a success and invest the money in a new startup. I added a little. Although it’s not dilutive, the price decrease made sense as this bunch of shares is coming on the market, just as if you held 2 million shares and decided to sell them it would temporarily drive the price down…but it has no effect on the ultimate price or the success of the company.
Saul
For Knowledgebase for this board,
please go to Post #17774, 17775 and 17776.
We had to post it in three parts this time.
A link to the Knowledgebase is also at the top of the Announcements column
that is on the right side of every page on this board
It’s totally non-dilutive. Venture Capitalists are doing what venture capitalists do.
Exactly
Talend (NASDAQ: TLND), a global leader in cloud and big data integration software, today announced the commencement of an underwritten public offering of 2,750,000 American Depositary Shares (“ADSs”), each representing one of its ordinary shares, by investment funds affiliated with Silver Lake Sumeru and investment funds affiliated with Balderton Capital pursuant to a registration statement on Form F-3 filed with the Securities and Exchange Commission (the “Commission”). Talend will not receive any proceeds from this offering.
https://finance.yahoo.com/news/talend-announces-offering-2-7…
Denny Schlesinger
Sold my Amazon and grabbed Talend.
However, will add Amazon to my “Old Foggie” port.
Cheers
Qazulight