Kornit Digital, a developer, manufacturer and marketer of industrial digital printing technologies for the textile & apparel industry, has launched an underwritten public offering of 3.6 million ordinary shares. This will be the fourth time the company has offered shares. This is to take further advantage of the ongoing growth of global online purchasing, reports The Media Line, and is expected to raise around US$125m.
Of the shares, two million are being offered by Kornit and 1.6 million are being offered by an affiliate of Amazon. The shares are being sold at US$56.50 per share and the stock has a market cap of US$2.46bn. Kornit Digital’s expected turnover for 2020 is around US$160m,
According to a press release on GlobeNewswire, Kornit will not receive any of the proceeds from the sale of shares being offered by Amazon.
“The shares being sold by an affiliate of Amazon are being issued pursuant to the exercise of a warrant granted to Amazon by Kornit,” the release states. “Kornit intends to grant the underwriters a 30-day option to purchase up to an additional 540,000 ordinary shares.”
Kornit offers digital printing solutions to the textile & apparel industries, enabling mass customisation and on-demand production runs. According to the company, this digital printing market is expected to grow to US$25bn by 2023. Previously, in 2017, online giant Amazon had taken a 4.75% share in Kornit – with a US$38m investment.
The release adds that Kornit intends to use the proceeds from the offering for future potential acquisitions, including complementary businesses, technologies or assets, and for general corporate purposes, including working capital and capital expenditures. Kornit has no agreements or understandings with respect to any acquisition or investment at this time.
Citigroup, Barclays and Goldman Sachs & Co LLC are acting as bookrunners and as representatives of the underwriters for this offering, while Needham & Company, Stifel, William Blair, Craig-Hallum Capital Group and CJS Securities act as co-managers.
Kornit has filed a preliminary prospectus supplement to its shelf registration statement on Form F-3 with the U.S. Securities and Exchange Commission for the proposed offering of its ordinary shares. The offering will be made only by means of a prospectus supplement and the accompanying prospectus.
The offering of these securities is being made under an effective shelf registration statement on file with the SEC. The registration statement can be accessed through the SEC’s website at www.sec.gov.
This article shall not constitute an offer to sell or the solicitation of an offer to buy nor may there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
