Twilio takes advantage of 760% surge in stock price to raise more capital
Twilios stock has soared more than eight-fold from its 2016 debut to over $129 as of Wednesdays close. The cloud software company is now using that rally as an opportunity to raise more cash.
Twilio said it has started a share offering to bring in $750 million and has plans to let underwriters buy another $112.5 million worth of stock.ÂIn afilingÂon Wednesday, the company said it expects to sell shares at $132.95 each.
The shares fell as much as 3% in extended trading after the announcement.ÂSecondary share sales often cause the stock price to decline because the offering dilutes the value of existing holders stakes.
Since its IPO almost three years ago, Twilio has rewarded investors by proving that it can sustain high growth even as its revenue numbers increase. Sales surged 81% in the latest quarter, accelerating from 48% a year earlier. The companys communications software is used by companies including Airbnb, Nordstrom and Lyft to power their messaging platforms.Â
Twilio shares are up about 760% from the IPO and almost 45% in 2019, while the Nasdaq has gained less than 14% this year.
Goldman Sachs and JP Morgan, who co-led the IPO, are also managing the secondary sale.
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