Computer hardware and peripherals company Corsair Gaming (NasdaqGS: CRSR) set a per-share price of $35 USD for its current public offering of 7.5M shares of its common stock. According to Corsair’s prospectus filed with the Securities and Exchange Commission (SEC), the offering consists solely of shares offered by selling stockholders. Therefore Corsair will receive no proceeds from the offering.
The selling stockholders, a group made up of Corsair’s majority owner EagleTree Capital and its co-managing partners and Corsair leadership, will raise $252M in proceeds from the offering before expenses.
The offering’s underwriters, including Goldman Sachs, Barclays Capital, Credit Suisse Securities, and six additional underwriters, secured underwriting discounts of $1.40 per share or $10.5M in total. As part of the underwriting agreement, the underwriters have the option to purchase up to an additional 1,125,000 shares from certain of the selling stockholders at the public offering price less the underwriting discount.
Through several of its subsidiaries, EagleTree, which bought a majority share in Corsair in July 2017 in a deal valued at $525M, and its co-managing partners George Majoros and Anup Bagaria are offering 7,135,000 of Corsair’s common stock. EagleTree and its co-managing partners will receive $240M in proceeds before expenses from the offering. Following the completion of this public offering, EagleTree will continue to be Corsair’s majority owner while reducing its stake in the company from 76.32% to 68.55%.
Additionally, Corsair’s CEO Andrew Paul offers 250K shares (worth $8.4M before expenses), Corsair’s President and COO Thi La 100K (worth $3.36M before expenses), and Corsair’s Vice President Finance, Investor Relations Ronald van Veen 15K (worth $474K before expenses) of the company’s common stock.
In September last year, Corsair completed its initial public offering on the Nasdaq Global Select Market and raised $118.6M before expenses in the offering. As part of the IPO process, EagleTree sold more than 6.5M common stock of Corsair at a per-share price of $17.
Once Corsair’s latest public offering is completed, EagleTree will have liquidated Corsair’s stock worth just more than $350M and could secure a complete return on investment on its initial investment in Corsair in a third public offering of the company’s common stock while remaining its majority stockholder.
