A Tale Of 2 Secondaries
First, 3D Systems (DDD) announced a $100M secondary on June 12th with proceeds to be used by the company to finance acquisitions and working capital. Second, Splunk (SPLK) announced a $300M secondary on June 27th where existing shareholders are selling shares with no proceeds going to the firm. The benefit to shareholders is the increase to the public float.
Notice that both scenarios involve insiders of the company with major shareholders or management concluding that the stock is an attractively priced currency to utilize. One wants to utilize the cash to grow the business while the other wants to cash out and exit the business.
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