Although secondary offerings typically cause stocks to fall, Coupa’s offering has been the exception to the rule. Coupa Software Inc (NASDAQ:COUP) surged 13.7% on Wednesday after the company priced a spot secondary of 4.4 million shares at $25.25 each. Originally planned to be 3.7 million shares, the company and its underwriters raised the offering size to 4.4 million shares due to strong demand. On the account of the fact that most of the shares sold from the offering were from third party holders, Coupa Software Inc (NASDAQ:COUP) will get only around $2 million in net proceeds. Due to Wednesday’s solid performance, shares of unified, cloud-based spend management platform maker have surged almost 16% year-to-date, far outpacing the NASDAQ’s 8.4% advance.
What Does The Smart Money Sentiment Say?
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According to our data, 7 elite funds had a bullish position in Coupa Software Inc (NASDAQ:COUP) at the end of the fourth quarter, up 7 funds from the previous quarter. The amount held by those 7 funds amounted to $152.3 million at the end of the fourth quarter, good for 12.2% of Coupa’s float at the time.
The Bottom Line
Coupa Software Inc (NASDAQ:COUP) shares have surged higher due to a secondary offering. For more reading, check out ‘11 Cities With The Highest Demand for Software Engineers‘.