Chegg (CHGG) Prices Upsized $1 Billon Public Offering of Common Stock

February 18, 2021 8:19 AM EST

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Chegg, Inc. (NYSE: CHGG), a Smarter Way to StudentĀ®, today announced the pricing of its upsized underwritten registered public offering of 9,804,000 shares of its common stock at a public offering price of $102.00 per share. All 9,804,000 shares of its common stock are offered by Chegg. Chegg and Dan Rosensweig, our President, Chief Executive Officer and Co-Chairperson of the Board, who is the selling stockholder, have granted the underwriters a 30-day option to purchase up to an additional 1,470,600 shares of its common stock, consisting of 300,000 shares of common stock from the selling stockholder, and 1,170,600 shares of common stock to be issued by Chegg. The offering is expected to close on February 22, 2021, subject to the satisfaction of customary closing conditions.

Chegg expects to use the net proceeds from the offering for general corporate purposes, which may include acquisitions or other strategic transactions and repayment of indebtedness. Chegg will not receive any proceeds from the sale of the shares by the selling stockholder.

Morgan Stanley, Goldman Sachs & Co. LLC and Allen & Company LLC will be acting as joint book-running managers for the offering. KeyBanc Capital Markets, Needham & Company, Raymond James, William Blair, Barrington Research, Berenberg, Craig-Hallum and Northland Capital Markets will be acting as co-managers.

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