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 added.
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 firewalls.
Morgan Stanley & Co LLC, Barclays Capital Inc, JPMorgan Securities LLC, and Goldman, Sachs & Co are the lead bookrunners for the offering, FireEye said.