Digi International Inc. (NASDAQ: DGII) has decided the pricing of a guaranteed certified public offering of 3,500,000 shares of its ordinary shares. The firm has set the price of $19.50 per share of common stock. Additionally, DGII has also conferred the advantage to the underwriter for the buying of extra 525,000 shares of its ordinary share on the same restrictions.
Digi International has proposed these ordinary shares. The offering is anticipated to execute on or about March 8, 2021, dependent on certain execution conditions. The firm is projecting a gross profit of $68.3 million before lessening the offering charges and markdowns. Digi has also omitted the use of the underwriters’ option to buy extra shares of ordinary stock.
Shares of Digi International Inc. (NASDAQ: DGII) plummeted by 10.78% as it lost -2.53 during the trading session of Wednesday. The firm has the last closing price of $20.93. During the trading session of Wednesday, the firm has recorded a trading volume of 392.81K as compared to the average volume of 198.27K. DGII has a total market capitalization of $614.71 million at the time of writing.
DGII is planning to use the net profit for working capital and for other general business purposes. DGIII is intending to utilize the profit to buy or invest in compatible businesses, technologies, or businesses. The firm has not decided yet which firm it will invest in or which technology it acquires.
The sole book-running manager for the offering is Piper Sandler. The co-manager of the offering are Colliers Securities LLC, Craig-Hallum Capital Group, Roth Capital Partners, and Stephens Inc. The offering is being made following the shelf registration declaration on Form S-3 submitted to U.S. SEC that became inevitably valid on March 2, 2021.