Chegg Announces Closing of Public Offering of Common Stock and Full Exercise of Underwriters’ Option to Purchase Additional Shares

Rhea-AI Summary

Chegg, Inc. (NYSE: CHGG) has successfully closed its public offering of 11,274,600 shares of common stock at a price of $102.00 per share. This includes 1,470,600 shares purchased through the underwriters' option. Of the total, Chegg sold 10,974,600 shares, while CEO Dan Rosensweig divested 300,000 shares. Chegg will not receive proceeds from Rosensweig's sale. The offering was managed by Morgan Stanley, Goldman Sachs & Co. LLC, and Allen & Company LLC, among others.

Positive

• Successful closing of public offering raising significant capital.
• Strong demand reflected by the full exercise of underwriters’ option.

Negative

• Dilution of existing shareholders due to the new shares issued.

Chegg, Inc. (NYSE: CHGG), a Smarter Way to Student^®, today announced the closing of its public offering of 11,274,600 shares of its common stock at a public offering price of $102.00 per share, which includes the exercise in full of the underwriters’ option to purchase an additional 1,470,600 shares of its common stock. Chegg sold 10,974,600 shares of its common stock in the offering and Dan Rosensweig, our President, Chief Executive Officer and Co-Chairperson of the Board, who is the selling stockholder, sold 300,000 shares of common stock in the offering. Chegg did not receive any proceeds from the sale of the shares by the selling stockholder.

Morgan Stanley, Goldman Sachs & Co. LLC and Allen & Company LLC acted as joint book-running managers for the offering. KeyBanc Capital Markets, Needham & Company, Raymond James, William Blair, Barrington Research, Berenberg, Craig-Hallum and Northland Capital Markets acted as co-managers.

An effective registration statement relating to these securities was filed with the Securities and Exchange Commission (the “SEC”) on February 16, 2021. The offering was made solely by means of a prospectus, copies of which may be obtained by contacting Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014 or by email at prospectus@morganstanley.com; from Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, by telephone at (866) 471-2526, or by email at prospectus-ny@ny.email.gs.com; or from Allen & Company LLC, Attention: Prospectus Department, 711 Fifth Avenue, New York, NY 10022, by telephone at (212) 339-2220, or by email at allenprospectus@allenco.com.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210222005892/en/

FAQ

What was the share price for Chegg's recent public offering?

Chegg's public offering was priced at $102.00 per share.

How many shares did Chegg sell in its recent offering?

Chegg sold a total of 10,974,600 shares in the recent offering.

Who managed Chegg's recent public offering?

Morgan Stanley, Goldman Sachs & Co. LLC, and Allen & Company LLC acted as joint book-running managers for the offering.

What is the impact of Chegg's offering on shareholders?

The offering may lead to dilution of existing shareholders due to the increase in the total number of shares.

Did Chegg receive any proceeds from the CEO's share sale?

No, Chegg did not receive any proceeds from the sale of shares by CEO Dan Rosensweig.