3D Systems Declines After Announcing $250 Million Share Sale
3D Systems Corp. (DDD), a maker of three-dimensional printers, fell the most in 2 1/2 months after announcing the sale of about $250 million of its stock, plus an additional 1.3 million shares by company officers and directors.
3D Systems’s stock declined 4.7 percent to $40.64 at 12:12 p.m. in New York, and earlier touched $39.55 for the biggest intraday drop since Feb. 25. Through yesterday, the stock had climbed 20 percent so far this year, compared with a 14 percent gain in the Standard & Poor’s Smallcap 600 Index.
3D Systems, whose printers build objects out of computer-based designs, plans to sell about $250 million worth of its own shares to “finance future acquisitions of other entities or their assets,” the company said in a statement after yesterday’s close in New York. Some of the Rock Hill, South Carolina-based company’s officers and directors will also sell their holdings, totaling about 1.3 million shares, as part of the offering.
“The size of the offering, in our view, suggests 3D Systems has its sights set on a relatively large target company,” Brian Drab, an analyst at William Blair & Co., wrote in a research note.
3D Systems, which said its proceeds from the offering will also be used for working capital and general purposes, said today it plans to price the share sale after the close of trading in New York on May 9.
Needham & Co., Canaccord Genuity Inc. and Piper Jaffray & Co. will manage the offering.
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