Dynatrace Launches Proposed Public Offering By Selling Stockholders
Portfolio Pulse from Benzinga Newsdesk
Dynatrace (NYSE:DT), a leader in unified observability and security, has announced the start of an underwritten public offering of 10,000,000 shares by certain selling stockholders. These stockholders are also giving the underwriter an option to buy up to an additional 1,500,000 shares within 30 days.
November 15, 2023 | 12:19 pm
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Dynatrace's stock may experience volatility following the announcement of a public offering of 10 million shares by selling stockholders, with a potential for an additional 1.5 million shares to be sold.
Public offerings often lead to a dilution of existing shares, which can result in downward pressure on the stock price in the short term. However, since the shares are being sold by existing stockholders and not Dynatrace directly, the company is not diluting its shares but rather facilitating liquidity for its stockholders. The impact on the stock price will depend on the market's perception of this liquidity event and the demand for Dynatrace's shares.
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