ODDITY Announces Pricing of Secondary Offering of Class A Ordinary Shares
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Insights
The secondary public offering from ODDITY Tech Ltd. reflects a significant liquidity event for the Selling Stockholder, L Catterton, impacting the market's perception of ODDITY's stock. The pricing of the shares at $43.50 indicates the underwriters' assessment of the company's value in current market conditions. Investors should note that the absence of proceeds to ODDITY from this transaction means the company's capital structure remains unchanged, which is a neutral factor for its operational financing. However, the market could interpret the sale as a signal regarding the Selling Stockholder's view of ODDITY's future prospects.
Moreover, the 30-day option for underwriters to purchase additional shares introduces a potential for increased market supply of ODDITY's shares, which could dilute the stock's value if exercised. The involvement of prominent financial institutions as book-running managers suggests confidence in the offering's success, yet their fees and the overall impact on share price due to increased float should be considered by current and prospective shareholders.
Analyzing the broader implications of ODDITY's secondary offering, it's essential to consider the technology sector's performance and investor sentiment. The pricing of the offering may reflect sector trends and the company's competitive position. If the tech sector is bullish, ODDITY's share price could remain stable or increase post-offering, despite the potential dilution. Alternatively, a bearish outlook could exacerbate the impact of increased share supply on the price.
Investors should also assess the timing of the offering. If L Catterton is divesting at a market peak, this could suggest a strategic exit. Conversely, selling in a downturn could indicate a need for liquidity or a lack of confidence in a short-term recovery. This offering also serves as a benchmark for valuations within the tech industry, potentially influencing future equity deals and mergers and acquisitions activity.
From a legal perspective, the effectiveness of the registration statement by the U.S. Securities and Exchange Commission (SEC) is a procedural milestone that allows the offering to proceed. Compliance with SEC regulations is mandatory and the availability of a prospectus ensures transparency, providing investors with critical information about the offering. The legal disclaimer in the press release is standard practice, designed to limit the company's and underwriters' liability and to inform potential investors of the regulatory framework governing the sale.
The secondary offering's structure, with multiple book-running managers, is indicative of a robust legal and regulatory process, ensuring the offering adheres to market standards and legal requirements. Potential investors are advised to review the prospectus closely for risk factors, management's discussion and analysis and the financial statements, which offer insights into ODDITY's financial health and future outlook, beyond the information disclosed in the press release.
NEW YORK, March 14, 2024 (GLOBE NEWSWIRE) -- ODDITY Tech Ltd. (“ODDITY”) today announced the pricing of a previously announced underwritten secondary public offering of 4,782,609 of ODDITY’s Class A ordinary shares (“Ordinary Shares”) by a fund managed by L Catterton (the “Selling Stockholder”) at a price of
ODDITY is not selling any Ordinary Shares in the offering and will not receive any proceeds from the sale of the shares being offered by the Selling Stockholder.
Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Allen & Company LLC and Evercore Group L.L.C. are acting as joint lead book-running managers for the offering. Barclays Capital Inc. is also acting as a lead book-running manager for the offering. Truist Securities, Inc., Citizens JMP Securities, LLC and KeyBanc Capital Markets Inc. are acting as book-running managers for the offering.
The proposed offering is being made only by means of a prospectus. A copy of the final prospectus related to the offering may be obtained, when available, from: Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, New York 10282, by telephone at (866) 471-2526, or by email at prospectus-ny@ny.email.gs.com; J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, by telephone at 1-866-803-9204, or by email at prospectus-eq_fi@jpmchase.com; and Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, by telephone at 1-866-718-1649, or by email at prospectus@morganstanley.com.
A registration statement relating to these securities was declared effective by the U.S. Securities and Exchange Commission on March 14, 2024. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, 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 ODDITY
ODDITY is a consumer tech company that builds and scales digital-first brands to disrupt the offline-dominated beauty and wellness industries. The company serves approximately 50 million users with its AI-driven online platform, deploying data science to identify consumer needs, and developing solutions in the form of beauty and wellness products. ODDITY owns IL MAKIAGE and SpoiledChild. The company operates with business headquarters in New York City, an R&D center in Tel Aviv, Israel, and a biotechnology lab in Boston.
Contacts
Press:
Michael Braun
Investor:
FAQ
What is the price per share for ODDITY's Class A ordinary shares in the secondary public offering?
How many additional shares can the underwriters purchase in the offering?
When is the expected closing date for the offering?
Who are the lead book-running managers for the offering?
Is ODDITY selling any Ordinary Shares in the offering?
