Backblaze drops on pricing $35 mln stock offering

Oppenheimer Holdings

21/11/2024 12:34

** Shares of cloud storage firm Backblaze  BLZE.O  down 6.9%
premarket to $5.80, over 2-mth low, after overnight follow-on
priced
** San Mateo, California-based co sold 6.25 mln shares at $5.60
for $35 mln gross raise
    ** Offering size boosted from $30 mln, priced at 10.1%
discount to sale
** Co plans to use net proceeds for working capital, sales and
marketing expenses to fund growth, R&D, among other purposes,
per SEC prospectus filing
    ** With ~44.4 mln shares outstanding, co has ~$277 mln
market cap, according to LSEG data
    ** Oppenheimer and Needham jt bookrunners for offering
    ** Through Weds close, shares off 18% YTD
    ** All 7 analysts covering BLZE are bullish, including 2
"strong buy" ratings; median PT is $12 - LSEG

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