Twilio Falls Most Since IPO After Secondary Share Sale Announcedby
Twilio Inc. fell the most since it started trading in June after the mobile and web-applications maker said the company and select shareholders will sell more stock.
Shares slid 12 percent to $53.19 at 11:40 a.m. in New York. Despite Monday’s drop, Twilio is still up more than 250 percent after pricing its initial public offering at $15 a share.
San Francisco-based Twilio was only the second venture-capital backed technology company to go public this year amid a dearth of IPOs across industries. Yet shares in technology companies that have successfully listed shares in the U.S. have gained 81 percent on average, according to data compiled by Bloomberg.
Twilio filed for a $400 million secondary offering, with the company planning to sell $50 million Class A shares and current stockholders selling the rest. Goldman Sachs Group Inc. and JPMorgan Chase & Co. are leading the sale.
The company raised $172.5 million in its June IPO, including an overallotment of shares to underwriters. Twilio is yet to update investors on the company’s financial progress since the IPO, with its first earning report scheduled on Nov. 3.