Hortonworks shares plunge 22% after secondary IPO news
Seeking a maximum $100m through sale of common stock
In Brief The shares of the Hadoop open-source software distributor Hortonworks have plunged 22 per cent following the company's announcement that it had filed for a secondary IPO.
Hortonworks is seeking to raise a proposed maximum $100m through the sale of common stock shares, according to a filing with the Securities and Exchange Commission. The company's current market cap was around $600m.
Morning trading on Tuesday reflected an ugly response from traders, as the company's shares officially opened on NASDAQ at $15.58 before falling to a $10.44 close.
The announcement followed Hortonworks's fourth-quarter earnings guidance, which claimed it expected revenue of between $37-38m, above what is expected on the street.
Actual earnings for the fourth quarter and fiscal year ending 31 December are expected on 10 February.
Late last year, Hortonworks dismissed a Gartner report that the big data market is "yet to take off". ®