San Diego-based ServiceNow Inc. (NYSE: NOW), a provider of cloud-based services to automate enterprise IT operations, announced the pricing of its follow-on public offering of 14 million shares of its common stock at a price to the public of $28 per share.
Of the 14 million shares of ServiceNow common stock being offered, 1.65 million shares are being offered by ServiceNow and 12.35 million shares are being offered by selling stockholders. The underwriters have been granted a 30-day option to purchase up to 2.1 million additional shares of common stock offered by ServiceNow and the selling stockholders, consisting of 247,500 shares offered by ServiceNow and about 1.85 million shares offered by selling stockholders.
As part of the offering, the selling stockholders have entered into lock-up agreements that will extend the initial public offering lock-up period on their remaining shares until 90 days after this offering.
ServiceNow will not receive any proceeds from the sale of the shares by the selling stockholders. The primary purposes of the offering are to facilitate an orderly distribution of the shares by selling stockholders, increase the company's public float and increase the company's financial flexibility.
Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., and Deutsche Bank Securities Inc. are acting as lead book-running managers for the offering. Barclays Capital Inc., Credit Suisse Securities (USA) LLC, and UBS Securities LLC are acting as joint book-running managers for the offering. Pacific Crest Securities LLC and Wells Fargo Securities LLC are acting as co-managers.