CCC Intelligent Solutions Announces Pricing of Upsized Secondary Offering of 43 Million Shares of Common Stock
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With CCC Intelligent Solutions Holdings Inc. announcing the pricing of its secondary offering, the immediate effect on the stock market is the potential dilution of existing shares. The upsizing of the offering from 40 million to 43 million shares, at a price of $11.42 per share, suggests a strong demand for the stock or a need for increased capital. The additional option for underwriters to purchase up to 6.45 million shares could further dilute the stock but also indicates a safeguard for additional capital if investor demand exceeds expectations.
Investors should consider the reasons behind the secondary offering, such as whether the company is seeking to raise capital for expansion, debt reduction, or other strategic initiatives. The influx of capital could strengthen the company's balance sheet, potentially leading to long-term growth. However, shareholders should be mindful of the short-term impact on share price and earnings per share due to the increase in the number of shares outstanding.
The secondary offering by CCC Intelligent Solutions Holdings Inc. reflects broader market trends where companies capitalize on favorable market conditions to raise funds. The pricing of the offering at $11.42 per share provides a benchmark for the company's valuation in the eyes of institutional investors. It is crucial to assess the market's reception of the offering, as a successful closing at the upsized amount could signal investor confidence in the company's future prospects.
Additionally, the involvement of affiliates of Advent International, L.P. and Oak Hill Capital Partners as the Selling Stockholders indicates a potential shift in the company's ownership structure. Market participants should monitor the post-offering trading activity for insights into the stock's liquidity and volatility, which could be affected by the change in the shareholder base.
The legal implications of a secondary offering involve a thorough examination of the disclosure requirements and regulatory compliance. The company must ensure accurate and transparent communication with investors regarding the use of proceeds from the offering. Any misrepresentation or omission could lead to legal challenges or regulatory scrutiny. Furthermore, the granting of an option to underwriters to purchase additional shares is a common practice that provides flexibility in the capital raising process but also requires careful legal structuring to avoid potential conflicts of interest between existing and new shareholders.
It is also important to consider the legal obligations that the Selling Stockholders may have post-transaction, such as lock-up agreements that restrict the sale of additional shares for a certain period. These agreements can stabilize the stock price post-offering by preventing a sudden influx of shares into the market.
Goldman Sachs & Co. LLC, BofA Securities and J.P. Morgan are acting as joint book running managers for the Offering. The Offering is being made pursuant to an effective shelf registration statement on Form S-3 (Registration No. 333-267793), which has been filed with the Securities and Exchange Commission (“SEC”) and became effective on October 14, 2022. The Offering is being made only by means of a prospectus supplement and the accompanying base prospectus. You may get these documents for free, including the prospectus supplement, once available, by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, copies of the prospectus supplement, once available, and the accompanying base prospectus may be obtained by contacting: Goldman Sachs & Co. LLC, Prospectus Department, 200 West Street,
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
ABOUT CCC INTELLIGENT SOLUTIONS
CCC Intelligent Solutions Inc. (CCC), a subsidiary of CCC Intelligent Solutions Holdings Inc. (NASDAQ: CCCS), is a leading SaaS platform for the multi-trillion-dollar P&C insurance economy powering operations for insurers, repairers, automakers, part suppliers, lenders, and more. CCC cloud technology connects more than 35,000 businesses digitizing mission-critical workflows, commerce, and customer experiences. A trusted leader in AI, IoT, customer experience, network and workflow management, CCC delivers innovations that keep people’s lives moving forward when it matters most.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements that are based on beliefs and assumptions and on information currently available. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. Forward-looking statements in this press release include, but are not limited to, statements regarding the Offering, including the expected closing of the Offering. Such differences may be material. We cannot assure you that the forward-looking statements in this press release will prove to be accurate. These forward-looking statements are subject to a number of risks and uncertainties, including, among others, closing of the Offering on the anticipated terms or at all; market conditions; and the satisfaction of customary closing conditions related to the Offering; and other risks and uncertainties, including those included under the header “Risk Factors” in our Form 10-K filed with the SEC on February 28, 2024, which can be obtained, without charge, at the SEC’s website (www.sec.gov). The forward-looking statements in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this press release.
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INVESTOR CONTACT
Bill Warmington
VP, Investor Relations, CCC Intelligent Solutions Inc.
IR@cccis.com
312-229-2355
MEDIA CONTACT
Michelle Hellyar
Senior Director, Public Relations, CCC Intelligent Solutions Inc.
mhellyar@cccis.com
773-791-3675
Source: CCC Intelligent Solutions Inc.
FAQ
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Who are the Selling Stockholders in the secondary offering of CCC Intelligent Solutions Holdings Inc.?
What is the price per share for the Offering by CCC Intelligent Solutions Holdings Inc.?
When is the expected closing date for the Offering by CCC Intelligent Solutions Holdings Inc.?
