Updated: SPS Commerce Plans Follow-on Public Offering of an Estimated 2.9m Shares



Via News Release

SPS Commerce (Nasdaq: SPSC) announced today that it filed a registration statement with the Securities and Exchange Commission for a proposed follow-on public offering* for an aggregate offering of 100,000 shares by SPS Commerce and an additional 2,771,240 shares by the selling stockholders. SPS Commerce and the selling stockholders expect to grant the underwriters an option to purchase up to an additional 430,686 shares to cover over-allotments, if any.”

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*Although SPS Commerce stock is down 6.18% on the news (perhaps based on the fact that current shareholders may sell nearly a quarter of holdings + the small dilution), the price has grown 11% since April 21 when the company raised $49m through an initial public offering of 4.1m shares at $12/share.  Updated 11/14 — From the prospectus:

“The primary purpose of this offering is to provide liquidity for the selling stockholders, including entities affiliated with certain members of our board of directors. We estimate that the net proceeds from our sale of shares of common stock in this offering will be approximately $900,000, based on an assumed public offering price of $14.11 per share, which was the last reported sale price of our common stock on November 8, 2010. We intend to use the net proceeds from this offering to pay the expenses we will incur in connection with this offering and for working capital and general corporate purposes. We will not receive any proceeds from the sale of shares by the selling stockholders.”