ServiceNow Inc., the San Diego provider of cloud-based IT services to large corporations, recently announced the pricing on a stock offering of 14 million shares at $28.
The great majority of the shares, about 12.3 million, are being sold by existing stockholders, while the company itself is selling 1.65 million shares. Underwriters were granted a 30-day option of buying up to 2.1 million shares, the company said.
ServiceNow said it isn’t getting any proceeds from the sale, and the primary purposes behind the offering are to facilitate an orderly distribution of shares by selling stockholders, increase the public float, and the company’s financial flexibility.
Since the firm’s initial public offering in June, the stock, traded on the New York Stock Exchange under NOW, jumped to above $40 in September. From that high it fell some but was at $31 as of Nov. 19. That price gave the business a market capitalization of $3.9 billion.
— Mike Allen