SciQuest's Misadventure Is a Sign of the Times
One victim of Wednesday's tech selloff was a planned secondary offering by SciQuest.com (SQST Quote). The North Carolina-based online marketplace for life sciences equipment canceled its planned secondary stock offering Wednesday afternoon.
The company's CEO, Scott Andrews, phoned late in the day to explain that "we think our shares are too valuable to sell at the current price." That price, 16 11/16, marks the company's lowest close since its Nov. 19 initial public offering at 16, and is a far cry from its high of 91 5/8 on Dec. 27.
To use a technical expression regarding SciQuest's reasons for pulling back: Poppycock. There's only one reason a company pulls a secondary offering, and it has zero to do with its opinion of its worth. Companies elect to not flood the market with millions of additional shares when there aren't any buyers for the stock. Period. ...
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