Squarespace Announces Secondary Offering Of 6M Shares Of Class A Common Stock By Selling Stockholder General Atlantic
Portfolio Pulse from Benzinga Newsdesk
Squarespace, represented by the ticker SQSP, has announced a secondary offering of 6 million shares of Class A common stock by one of its selling stockholders, General Atlantic. Additionally, General Atlantic plans to offer the underwriter a 30-day option to purchase up to an additional 900,000 shares of Class A common stock.
November 15, 2023 | 9:53 pm
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The secondary offering of shares by General Atlantic could potentially increase the number of available shares of Squarespace, which may lead to dilution of existing shares or perceived overhang, potentially putting downward pressure on the stock price in the short term.
Secondary offerings often result in an increased supply of stock, which can lead to share price dilution. Investors may view this as a negative signal, especially if they perceive that a major stockholder is reducing their stake. The option for underwriters to purchase additional shares could further contribute to potential stock dilution.
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