PLANO, Texas - Alkami Technology, Inc. (NASDAQ:ALKT), a provider of cloud-based digital banking solutions in the U.S., has priced its secondary offering of 5 million shares. The shares are being sold by affiliates of General Atlantic, S3 Ventures, George B. Kaiser, and Brian R. Smith, who will receive all proceeds from the sale. The offering, managed by J.P. Morgan Securities LLC as the sole book-running manager, is expected to close on August 12, 2024, with a 30-day option for the underwriter to buy up to an additional 750,000 shares.
The company itself will not be selling any shares nor will it gain any proceeds from this offering. This move comes after the company's shelf registration statement on Form S-3 became effective on August 8, 2024. Details of the offering are available through the prospectus supplement and accompanying prospectus filed with the SEC.
Alkami, known for its digital banking platforms that cater to both retail and commercial clients, is not involved financially in this transaction and will not benefit from the proceeds. The offering is being conducted under SEC regulations and is available only through the prospectus supplement and related documents.
The announcement includes forward-looking statements regarding the expected closing date of the offering. However, it's important to note that such statements are subject to various risks and uncertainties that could cause actual results to differ materially.
This news is based on a press release statement and contains no endorsement of the company's claims. It is a factual report of the offering's pricing and structure as announced by Alkami Technology, Inc.
In other recent news, Alkami Technology, Inc. has announced a secondary offering of 5 million shares by affiliated selling stockholders. The completion of this offering is contingent on market conditions and other factors. Alkami has also been the focus of several analyst firms following its strong financial performance. Craig-Hallum, Lake Street Capital Markets, Needham & Company, and Barclays have all raised their price targets for the company, maintaining positive ratings.
Alkami reported a 25% increase in revenue for Q2 2024, with an adjusted EBITDA of $4.6 million. The company has also expanded its credit facility. In addition, Alkami recently appointed Prerna Sachdeva as the new principal accounting officer, bringing over two decades of experience in global accounting and financial reporting to the role. These are the latest developments, shedding light on Alkami's operational and financial progress.
InvestingPro Insights
As Alkami Technology, Inc. (NASDAQ:ALKT) navigates through its secondary offering, investors and potential shareholders are keen on understanding the company's financial health and market performance. According to real-time data from InvestingPro, Alkami's market capitalization stands at $3.34 billion, reflecting the scale of the company within the digital banking solutions sector. Despite not being profitable over the last twelve months, Alkami has demonstrated a robust revenue growth of 26.69% during the same period, indicating a strong market demand for its services.
InvestingPro Tips reveal that analysts have revised their earnings upwards for the upcoming period, suggesting optimism about Alkami's future performance. This aligns with the company's significant year-to-date price total return of 38.97%, showcasing investor confidence. Additionally, Alkami's liquid assets exceed its short-term obligations, providing the company with a solid financial footing to manage its current liabilities and invest in growth opportunities.
It's worth noting that Alkami is trading near its 52-week high with a price percentage of 93.61% of the peak, which may attract investors looking for companies with strong market momentum. For those interested in exploring further insights, there are additional InvestingPro Tips available on the platform, which can be accessed by visiting https://www.investing.com/pro/ALKT.
These financial metrics and analyst insights provide valuable context for the secondary offering and the company's overall financial trajectory. With the offering managed by J.P. Morgan Securities LLC and expected to close shortly, the market will be watching Alkami's performance with interest.
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