Greentree I will address your concerns on this matter. Inktomi offered 2,254,000 shares to the public. 2,000,000 offered by the company (which means they raised $36,000,000 cash) 254,000 offered by selling stockholders. The total outstanding shares of the company after the offering are 20,531,813. That means that they only offered 10 % of the equity at the $18 price tag. They have lots more they can offer. If you multiply the $18 price tag by the outstanding shares that means that they valued their company at a modest $370 million. Remember that the week they went public the tech and internet stocks were very weak. Besides they only offered 10 % of their stock. At today's price of around 41 the market cap of the company is at $841,000,000. There next offerings will dilute our shares with a bigger float but they will surely get alot more for 10 % of the company.
They will have plenty to finance R&D and acquisitions as they see fit, in my opinion.
Regards,
FDA |
