Why Veeva Systems (VEEV) Stock Is Down Today

NEW YORK (TheStreet) -- Veeva Systems (VEEV) hit a 52-week low on Wednesday after pricing its previously-announced secondary offering.

Shares of the cloud software specialist had taken off 6.8% to $25.41 by midafternoon. Earlier, the stock fell as low as $25.21, its lowest level in 12 months.

Trading volume of 5.7 million shares was more than 6 times its three-month daily average.

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Pleasanton, Calif.-based Veeva said it would offer 12 million shares of its Class A common stock at a price of $26.35 a share, a 3.4% discount on Tuesday's closing price of $27.27.

Veeva will sell 890,000 shares of the total on offer, while the remaining 11.11 million will be sold by certain high-volume stockholders. The underwriters have been granted a 30-day option to buy up to an additional 1.8 million shares.

The company will only receive net proceeds from the shares it sells.

Morgan Stanley, Deutsche Bank and JPMorgan will act as joint book-running managers for the offering, while Pacific Crest Securities, Canaccord Genuity, Stifel and Wells Fargo will act as co-managers.

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