Zeta hits record high after upsized stock offering, Q3 guidance boost

Zeta Global Holdings

05/09/2024 16:21

(Updates to market open, recasts)
    ** Shares of software co Zeta Global Holdings  ZETA.N 
reverse premarket losses and hit fresh record on Thurs after
stock offering increased and co raised Q3 forecasts
    ** ZETA last up 8.4% at $26.96 after rising as high as
$27.14. Stock exceeds prior intraday record of $26.45 set on
Tues
    ** Cloud-based marketing tech firm late Weds announced 13.2
mln shares at $23.50; Zeta sold ~8.7 mln shares, while GPI
Capital offloaded ~4.5 mln shares
    ** Joint bookrunners Morgan Stanley, Goldman, BofA,
Citigroup and KKR Capital Markets had marketed offering of 11
mln shares upon launch late Weds
    ** Also after the bell Weds, Zeta boosted Q3 guidance,
including rev to at least $255 mln, up $15.8 mln from midpoint
of its prior projection of $239.2 mln, and adj EBITDA to at
least $50.2 mln
    ** Zeta plans to use net proceeds it receives for general
purposes, including potential acquisitions
    ** Investment firm GPI's holdings reduced from ~10.2 mln
shares to ~5.7 mln shares, or ~2.6% stake
    ** With move on the session, ZETA shares have tripled YTD
    ** Zeta, co-founded by former Apple CEO John Sculley, went
public in 2021 in IPO priced at $10

 (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))