Red Violet Prices $100M Follow-On Offering at $60/Share, a 12% Discount to Last Close

summarizeSummary

Red Violet priced a $100 million public offering at $60 per share, a 12% discount to its last close, raising $95 million for working capital and potential acquisitions. The deal dilutes existing shareholders by about 10.5% and comes just two months after top executives sold $2.6 million in stock.

check_boxKey Events · Financing and Capital Events · RDVT

• $100M Follow-On Offering Priced at $60/Share

  Red Violet is issuing 1,666,667 shares at $60.00 each, a 12.1% discount to the $68.28 last close before announcement. Underwriters have a 30-day option for 250,000 additional shares.

• ~10.5% Dilution to Existing Shareholders

  Post-offering shares outstanding will be 15,796,975 (or 16,046,975 if greenshoe exercised), up from 14,130,308. The offering increases share count by about 11.8% (or 13.6% with full greenshoe).

• Net Proceeds of ~$94.4M for General Corporate Purposes

  After $5M in underwriting discounts and ~$640K in expenses, the company will receive approximately $94.4 million. Proceeds are earmarked for working capital and potential acquisitions.

• Preliminary Q2 2026 Results Disclosed

  The prospectus supplement includes estimated Q2 revenue of $26.71M, net income of $4.96M, and adjusted EBITDA of $11.22M, showing continued growth and profitability.

auto_awesomeAnalysis · RDVT · Technology

Red Violet is selling 1.67 million shares at $60 each, raising $95 million after fees. The price is a 12% discount to the $68.28 close before the deal was announced, diluting existing holders by about 10.5%. The company is profitable and growing, but the discount and the size of the raise — roughly 10% of its market cap — signal urgency or a desire to capitalize on a stock trading near all-time highs. The filing also discloses strong preliminary Q2 results, which may have been used to market the deal. Insiders, who sold $2.6 million in stock just two months ago, are now locked up for 60 days.