EngageSmart drops as top investors cut stakes

EngageSmart

01/03/2023 18:35

** EngageSmart Inc's  ESMT.N  shares down 8.7% at $19.21 on
Weds after secondary offering prices
    ** Stock on track for biggest one-day pct drop since Jan 5,
2022
    ** Customer engagement/payments software firm early Weds
announced 8 mln shares sold by PE firms General Atlantic and
Summit Partners along with certain execs at $19
    ** Offering price represents 9.7% discount to stock's last
sale on Tues
    ** General Atlantic offloads ~6 mln shares to cut its stake
to ~55% (~91 mln shares), while Summit sells 1.7 mln shares to
reduce its ownership to ~15% (~25 mln shares), per the
prospectus filing
    ** Goldman Sachs, JP Morgan and BofA Securities acting as jt
bookrunners for the offering
    ** Nearly 2.8 mln ESMT shares have exchanged hands so far on
the session, 5x stock's 25-DMA volume, per Refinitiv
    ** Stock now up ~9% YTD. Co went public in Sept 2021 in IPO
priced at $26

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))