Shutterstock Public Offering

Posted on 8/14/2020 by Jim Pickerell | Printable Version | Comments (0)

On Wednesday Shutterstock announced a public offering of 2,580,000 shares of its common stock at a price to the public of $48.50 per share. Of this total 2,064,000 of the shares are owned by Jon Oringer, Shutterstock's Founder, Executive Chairman of the Board. The other 516,000 shares are owned by the company.

Mr. Oringer will net $100,104,000 from the sale of his shares and the company will earn $25,026,000 from its sale of 516,000 shares bringing the total for the public offering to $125,130,000.

In addition, Mr. Oringer granted the underwriters a 30-day option to purchase up to an additional 387,000 shares of common stock which at $48.50 each would possibly net him an additional $18,769,500 if all the share sell. The offering is expected to close on August 14, 2020, subject to the satisfaction of customary closing conditions.



Currently the company has a total of 35,700,000 shares outstanding. The current price of the stock is $48.07. Thus, the total value of all the shares is $1,716,099,000.

On August 3, 2020 Oringer owned 16,086,327 shares. On the 3rd and 4th he sold 85,000 shares for a total of $4,645,801.97 and still owned 16,001,327 or 44.8% of the total shares outstanding. After the sale of an additional 2,064,000 on August 12 Oringer will still own 14,937,317 shares or 41.8% of the shares outstanding.



On April 27, 2020, the day Shutterstock announced its Q1 results the stock traded at $38.90. On July 28 when they announced their Q2 results the stock was trading at $51.06. By August 5th the stock had peaked at $58.42 per share.  On August 12th the stock took a big slide and ended the day at $48.43. Currently it is trading at $48.07 and has had a low for of $46.34 yesterday.

At $48.07 Oringer’s remaining 14,937,317 shares are worth $718,036,828.

It is also worth noting that in 2019 Shutterstock paid out a total of about $181,730,000 to its contributors who provide "ALL" the content Shutterstock licenses. And on May 26, 2020 they announced that business had been so bad that it would be necessary to dramatically reduce the future royalties they would pay contributors.



Isn’t capitalism wonderful?


Copyright © 2020 Jim Pickerell. The above article may not be copied, reproduced, excerpted or distributed in any manner without written permission from the author. All requests should be submitted to Selling Stock at 10319 Westlake Drive, Suite 162, Bethesda, MD 20817, phone 301-461-7627, e-mail: wvz@fpcubgbf.pbz

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