Grid Dynamics Announces Pricing of Follow-On Offering

Rhea-AI Summary

Grid Dynamics (NASDAQ:GDYN) announced a follow-on public offering of 10,100,262 shares at $15.03 each, with 4,000,000 shares from the company and 6,100,262 from selling stockholders. The offering is expected to close on July 6, 2021, pending customary conditions. No proceeds will be received by Grid Dynamics from shares sold by stockholders. The underwriters have a 30-day option for an additional 1,515,039 shares. The offering is detailed in shelf registration statements effective since May 13, 2021.

Positive

• Pricing of 10,100,262 shares at $15.03 demonstrates strong demand.
• Underwriters' option to purchase additional shares indicates confidence.

Negative

• Grid Dynamics will not receive proceeds from the majority of the shares offered, impacting cash flow.
• Dilution risk for existing shareholders due to increased share count.

Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) (Grid Dynamics), a leader in enterprise-level digital transformation, today announced the pricing of an underwritten follow-on public offering of 10,100,262 shares of its common stock, which includes 4,000,000 shares offered by Grid Dynamics and 6,100,262 shares offered by certain selling stockholders, at a price to the public of $15.03 per share. Closing of the offering is expected to occur on July 6, 2021, subject to customary closing conditions. Grid Dynamics will not receive any proceeds from the sale of the shares by the selling stockholders. In addition, Grid Dynamics and certain selling stockholders granted the underwriters a 30-day option to purchase up to an additional 1,515,039 shares of common stock, which includes 1,470,039 shares from Grid Dynamics and 45,000 shares from certain selling stockholders.

J.P. Morgan Securities, LLC, William Blair & Company, L.L.C. and Cowen and Company, LLC are acting as joint book-running managers for the offering. Needham & Company, LLC and Cantor Fitzgerald & Co. are acting as co-managers for the offering.

The offering will be made only by means of a prospectus. Copies of the preliminary prospectus related to the offering may be obtained, when available, from J.P. Morgan Securities LLC, Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at 1-866-803-9204 or by email at prospectus-eq_fi@jpmchase.com; William Blair Securities, L.L.C., Attention: Prospectus Department, 150 North Riverside Plaza, Chicago, Illinois 60606, by telephone at (800) 621-0687 or by email at prospectus@williamblair.com; or Cowen and Company, LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York, 11717, Attn: Prospectus Department, by telephone at (833) 297-2926, or by email at PostSaleManualRequests@broadridge.com.

The shares are being offered by Grid Dynamics and the selling stockholders pursuant to shelf registration statements on Form S-3 (File Nos. 333- 238202 and 333-255732), which each became effective on May 13, 2021. 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 Grid Dynamics

Grid Dynamics (Nasdaq: GDYN) is a digital-native technology services provider that accelerates growth and bolsters competitive advantage for Fortune 1000 companies. Grid Dynamics provides digital transformation consulting and implementation services in omnichannel customer experience, big data analytics, search, artificial intelligence, cloud migration, and application modernization. Grid Dynamics achieves high speed-to-market, quality, and efficiency by using technology accelerators, an agile delivery culture, and its pool of global engineering talent. Founded in 2006, Grid Dynamics is headquartered in Silicon Valley with offices across the US, Western, Central, and Eastern Europe. To learn more about Grid Dynamics, please visit www.griddynamics.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210701005463/en/

FAQ

What is the share price for Grid Dynamics' recent offering?

The share price for the recent offering is $15.03.

When is the closing date for the Grid Dynamics public offering?

The closing date for the offering is expected on July 6, 2021.

How many shares are being offered by Grid Dynamics?

Grid Dynamics is offering 4,000,000 shares in this public offering.

What is the total number of shares in the Grid Dynamics offering including selling stockholders?

The total number of shares in the offering is 10,100,262.

Will Grid Dynamics receive proceeds from the entire offering?

No, Grid Dynamics will not receive proceeds from the shares sold by the selling stockholders.