Ping Identity Holding Corp. (PING) announced the pricing of the follow-on offering of six million common shares held by Vista Equity Partners. Shares dove 7.9% to close at $22.61 on June 15.
Ping enables companies to achieve Zero Trust identity-defined security and more personalized, streamlined user experiences. (See Ping Identity stock chart on TipRanks)
Vista Equity Partners owns around 47% of the company’s common stock with 38.5 million of Ping’s 82.04 million common shares outstanding.
The shares are to be offered in the open market at $24 per share. Additionally, Morgan Stanley, the sole underwriter of this offering, has also been given a 30-day option to purchase up to 900,000 shares on the same terms.
Ping has affirmed that the offering will not dilute current shareholders’ equity, as the company is not issuing any of its common shares in the offering.
Additionally, Ping is not entitled to receive any of the proceeds from the sale, but the company will bear the costs related to the offering.
The offering, subject to certain closing conditions, is expected to close on June 17.
Following the news, Needham analyst Mike Cikos assigned a Hold rating to the stock and told investors, “We view Vista’s reduced ownership positively, as it will improve liquidity and reduce Vista’s presence on the board, where it currently holds 5 of 11 seats, including the Chairmanship.”
The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 4 Buys versus 4 Holds. The PING average analyst price target of $31.21 implies 38% upside potential to current levels. Shares have lost 26.2% over the past year.
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