Zeta slips on stock offering

Zeta Global Holdings

05/09/2024 12:48

** Shares of software co Zeta Global Holdings  ZETA.N  down
3% premarket to $24.13 after overnight stock offering priced
    ** Cloud-based marketing tech firm late Weds announced 13.2
mln shares at $23.50, 5.5% discount to last sale
    ** Offering size, increased from 11 mln shares, with Morgan
Stanley, Goldman, BofA, Citigroup, and KKR Capital Markets as jt
bookrunners
    ** Zeta sold ~8.7 mln shares, while GPI Capital offloaded
~4.5 mln shares
    ** Co to use net proceeds it receives for general purposes,
including potential acquisitions
    ** Offering takes investment firm GPI's holdings from ~10.2
mln shares to ~5.7 mln shares, or ~2.6% stake
    ** 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
    ** Shares on Tues hit record intraday high of $26.45 after
ending 2023 at $8.82
    ** 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))