With the current share price at $16.18, the offer of 10 million shares at $15.50 will be an attractive proposition. Of the shares on offer, 8,762,000 will be offered by the company, and 1,328,000 by existing shareholders. Underwriters have an option to purchase an additional 1,500,000 shares to cover over-allotments.
Dot Hill would have been able to raise even more but for a disappointing earnings forecast earlier this month when its shares were riding high at $20m. It forecast third-quarter revenue of $46m when analysts had been expecting $50m, and said it expected this to rise to $55m in the fourth quarter when analysts had anticipated $58m.
Money from the share sale will be used to expand its R&D, and Dot Hill said it might use a portion for acquisitions or other investments.
This article is based on material originally published by ComputerWire
