ODDITY Announces Secondary Offering of Class A Ordinary Shares
- None.
- ODDITY will not receive any proceeds from the sale of shares in the offering, potentially impacting the company's financial position negatively.
The secondary public offering of 4,000,000 Class A ordinary shares by ODDITY Tech Ltd. represents a significant liquidity event for the Selling Stockholder, L Catterton. The potential addition of a 30-day option for underwriters to purchase up to an additional 600,000 shares could indicate a strong underwriter confidence in the market's reception of the offering. However, it's critical to assess the impact this may have on the stock's liquidity and potential dilution effects, even though ODDITY itself is not issuing new shares or receiving proceeds.
From a market perspective, the involvement of top-tier investment banks as joint lead book-running managers suggests a robust handling of the offering. The prestige and expertise of these banks can often lead to a more favorable pricing and distribution network, which is beneficial for current shareholders. Investors should monitor the stock's performance closely around the offering date, as large offerings can sometimes lead to short-term volatility.
The announcement of a secondary public offering is a pivotal event for existing and potential investors, as it provides insights into the current shareholders' views on the company's valuation and future prospects. In the case of ODDITY, the Selling Stockholder's decision to sell a portion of their holdings might be interpreted in various ways. It could be seen as taking profits after a period of appreciation, or possibly as a move to diversify their portfolio.
Understanding the market's perception of such an offering is crucial. If the offering is seen as a vote of confidence, it could lead to increased investor interest. Conversely, if the market interprets the sale as a lack of confidence by a major investor, it could potentially apply downward pressure on the share price. Analyzing past secondary offerings in the tech sector could provide comparative insights into the potential market reaction.
The legal framework surrounding the secondary offering is of paramount importance. The registration statement's status, filed with the Securities and Exchange Commission (SEC) but not yet effective, is a procedural step that must be finalized before any sales can occur. This ensures compliance with federal securities laws and provides potential investors with essential information about the offering. It's important for investors to understand that the preliminary prospectus will contain vital details regarding the offering and any investment decision should be made on the basis of the final prospectus.
The disclaimer about the offering not constituting an offer to sell securities until the registration statement becomes effective is standard legal practice to avoid premature solicitation. This also highlights the regulatory safeguards in place to protect investors, which is an important consideration for maintaining market integrity and investor confidence.
NEW YORK, March 12, 2024 (GLOBE NEWSWIRE) -- ODDITY Tech Ltd. (“ODDITY”) today announced the commencement of an underwritten secondary public offering of 4,000,000 of ODDITY’s Class A ordinary shares (“Ordinary Shares”) by a fund managed by L Catterton (the “Selling Stockholder”). The Selling Stockholder intends to grant the underwriters a 30-day option to purchase up to an additional 600,000 Ordinary Shares.
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 proposed offering. Barclays is also acting as a lead book-running manager for the proposed offering.
The proposed offering will be made only by means of a prospectus. A copy of the preliminary prospectus related to the proposed offering may be obtained 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 has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. 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
michaelb@oddity.com
Investor:
investors@oddity.com
FAQ
What type of shares are being offered in the public offering by ODDITY?
Who is managing the underwritten public offering by ODDITY?
Will ODDITY receive any proceeds from the sale of shares in the public offering?
How can one obtain the preliminary prospectus related to the public offering by ODDITY?
Has the registration statement for the securities in the public offering been filed with the SEC?
Can the securities be sold before the registration statement becomes effective?
