PALO ALTO, Calif. - AppLovin Corporation (NASDAQ:APP), a global marketing platform, disclosed the pricing of a secondary offering of 19,866,397 shares of Class A common stock by selling shareholder KKR Denali Holdings L.P. AppLovin will not receive any proceeds from the sale of shares in this transaction.
Concurrently, AppLovin has stated its intention to repurchase approximately $570 million of its Class A common stock at the same per-share price paid by the underwriters in the secondary offering. This buyback is contingent on the offering's completion, and there is no guarantee that it will occur. The secondary offering, however, is not dependent on the completion of the share repurchase.
BofA Securities is the lead book-running manager for the offering, with a consortium of financial institutions, including BTIG, Evercore ISI, Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Citigroup, and others, serving as book-runners. Several veteran-owned financial firms are participating as co-managers.
The offering is being conducted through an effective registration statement and related prospectus documents filed with the U.S. Securities and Exchange Commission (SEC), which became effective on June 1, 2023. Potential investors are advised to read these documents, available through the SEC's EDGAR system or directly from BofA Securities, for more comprehensive information about AppLovin and this offering.
The information in this article is based on a press release statement from AppLovin Corp.
InvestingPro Insights
Amidst the news of AppLovin Corporation's (NASDAQ:APP) secondary offering and share repurchase plan, investors are keenly observing the company's financial health and market performance. According to real-time data from InvestingPro, AppLovin boasts a robust market capitalization of $19.84 billion, reflecting significant investor confidence.
InvestingPro data also reveals a notable revenue growth of 16.54% over the last twelve months as of Q4 2023, with a remarkable quarterly revenue growth of 35.73% in Q4 2023. This indicates a strong upward trajectory for the company's earnings. Additionally, AppLovin's gross profit margin stands at a healthy 67.74%, suggesting efficient operations and cost management.
Investors may find the InvestingPro Tips particularly insightful: AppLovin's management has been actively engaging in share buybacks, signaling a bullish stance on the company's valuation and future prospects. Furthermore, the company is trading at a low P/E ratio relative to near-term earnings growth, which could present a value opportunity for investors looking for growth at a reasonable price.
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