Altair to sell more shares in follow-on to last year’s IPO

Jun 7, 2018 | Hot Topics

Altair has only been public for a couple of months but today announced that it’s filed the paperwork for a follow-on public offering of 5,600,000 shares of its Class A common stock, 3,292,580 shares of which will be offered by Altair and 2,307,420 shares offered by individual stockholders. Altair today set a price of $35 per share, meaning that the total raised will be about $196 million. Altair, of course, won’t make money from shares it is not selling but should still see $110 million to $140 million, depending on if and how underwriters buy shares and the fees and commission that will be paid as part of this process.

Altair said it will use its share of the proceeds for “general corporate purposes, including working capital, sales and marketing activities, general and administrative matters, real estate development, including developing and building an addition adjacent to our corporate headquarters facilities, and capital expenditures. We may also use a portion of the net proceeds for the acquisition of, or investment in, technologies, solutions or businesses that complement our business. We do not have any agreements or binding commitments for any such acquisitions or investments at this time”.

Altair currently has around 33 million class A shares outstanding, so this is playing with less than 20% of that class of shares. CEO Jim Scapa will continue to control a majority of the combined classes of stock (and, therefore, voting power) at Altair even upon completion of this offering.

The company expects this offering to close on June 11, 2018.