The underwriters who led the secondary offering by Ceragon Networks Ltd. (Nasdaq: CRNT; TASE:CRNT) have exercised their options by purchasing shares in the company, thereby increasing the proceeds from the offering to $45.1 million. Ceragon, which provides high capacity wireless communications solutions, is listed on both Nasdaq and the Tel Aviv Stock Exchange (TASE), at a $158 million market cap. The offering got underway several weeks ago when the share price hit a low of $2; it is currently at $2.10.
The underwriters, Needham and Openheimer, bought close to 2.9 million shares, increasing the company's proceeds by $5.7 million. Ceragon had $36 million in the bank before the offering, following a $31 million secondary offering in late 2013. Ceragon president and CEO Ira Palti recently explained his company's need for more cash by saying that the company was expecting significant orders and expansion of its current projects, and was therefore embarking on an offering to ensure "financial flexibility that will make it possible to finance the expected growth on the one hand, and avoid liquidity problems on the other."
Oppenheimer published a recommendation for Ceragon a few days ago, writing that the company was at a turning point, and that there was reason for optimism. The recommendation nevertheless is still unchanged at "market perform," and the analysts did not set a target price.
Published by Globes [online], Israel business news - www.globes-online.com - on August 24, 2014
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