Five Below Inc. (NASDAQ: FIVE) has enjoyed a rather good run since its 2012 initial public offering. The company sells products that cost under $5 and are supposed to be targeted towards children. Now we have a secondary offering from the company, and investors should know that this offering is the insiders cashing out.
The secondary offering was raised in size due to demand, up to 11.315 million shares at $35.65 per share. This was projected to be 10.315 million shares to be sold just last week. The underwriters were listed as Goldman Sachs, Barclays Capital, Jefferies & Company, Credit Suisse Securities, Deutsche Bank Securities, UBS Securities and Wells Fargo Securities. Certain selling shareholders have granted the underwriters a 30-day option to purchase an additional 1,697,250 shares of common stock.
Here is all that investors need to know on the surface: All of the shares are being offered by selling shareholders, including certain members of Five Below’s management team and affiliates of certain members of Five Below’s board of directors. Five Below will not receive any proceeds from the sale of shares in this offering.
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