| March 7
March 7 Network security company FireEye Inc
has priced the follow-on public offering of 14 million
shares of its common stock at $82 per share, expecting to raise
about $460 million.
Of the shares being offered, 5.6 million are being offered
by FireEye and the remaining shares are being offered by
existing stockholders. FireEye said it would not receive any
proceeds from the shares sold by existing stockholders.
The secondary offering will help FireEye focus on investing
in the business, Daniel Ives, analyst at FBR Capital Markets
said in a note to clients on Wednesday.
"We expect FireEye to invest in head count expansion, M&A
(tuck-in acquisitions), and capital expenditures that will
position the company for strong continued growth over the coming
years, which could prove our estimates to be conservative," he
FBR Capital raised its price target for FireEye stock to
$105 from $90 on Wednesday, citing increased confidence in the
business from recent data points and the removal of the
"secondary offering overhang".
FireEye stock closed at $89.55 on Thursday on the Nasdaq.
The company is focusing more on investment for future growth
and is not looking at profitability in the near term, Chief
Operating Officer Kevin Mandia told Reuters last month.
FireEye, which acquired computer forensics specialist
Mandiant Corp in January, reported a wider adjusted net loss of
$40.5 million, or 35 cents per share, for the fourth quarter
ended Dec. 31.
The company last month launched intrusion prevention
systems, putting itself in direct competition with Cisco Systems
Inc and Palo Alto Networks Inc. The product
helps companies detect cyber threats that breach their
Morgan Stanley & Co LLC, Barclays Capital Inc, JPMorgan
Securities LLC, and Goldman, Sachs & Co are the lead bookrunners
for the offering, FireEye said.