Life360 shares lift as Goldman Sachs exercises over-allotment option
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More news: Shares in family tracking app maker Life360 gained at market open after Goldman Sachs exercised its over-allotment option to sell an additional 862,500 shares in the US technology company.
Life360 shares were up 1.9% to $15.36 by 10:35am AEST. Over the last 12 months its shares have surged 116.01%.
Goldman Sachs exercises Life360 over-allotment option
The news: Goldman Sachs has exercised its over-allotment option to sell an additional 862,500 shares of common stock in Life360, following the US technology company's initial public offering (IPO) on the Nasdaq earlier this month.
The numbers: As part of its IPO, Life360 offered 5,750,000 shares of common stock — 3,703,704 of which were sold by Life360 and 2,046,296 of which were sold by certain selling security holders — at the IPO price of USD27 ($40.80) per share.
Goldman Sachs, one of its selling shareholders, has now exercised its 30-day over-allotment option to divest an additional 862,500 shares at the listing price.
Shares in dual-listed Life360, maker of the family tracking app of the same name, last closed 15% higher on the Nasdaq at USD10, and 5.5% higher on the ASX at $15.07.
The context: The over-allotment option, also known as a "greenshoe" option, is a provision in an IPO underwriting agreement that grants the underwriter to right to sell more shares than originally planned if the demand for a security issue proves higher than expected.
San Francisco-based Life360 announced that it would list on the Nasdaq in May, with the aim of increasing its capitalisation and financial flexibility, create a public market for its common stock in the US and for general corporate purposes, including working capital, operating expenses and capital expenditures.
The source: ASX announcement
