Provo, Utah- and Seattle-based Qualtrics International announced plans late yesterday to sell up to 27.4 million shares in a Public Offering.

At the per share price of $43.42 at market close today, NasdaqGS:XM, Qualtrics would raise over $1.1 billion in the Offering (assuming the underwriters exercise their 30 day rights to purchase an over-allotment of 3.2 million shares).

US Dollars
Photo by Alexander Schimmeck / Unsplash

With the proceeds, the company says it plans to "repay a promissory note payable to SAP America" with the remainder used for "working capital and other general corporate purposes."

According to page 6 (and others) of the Offering Prospectus, the principal and interest due are $500 million on the promissory note; this would leave over $600 million to Qualtrics post-repayment.

To be clear, the timing and formal pricing of this Public Offering is not known at this time.

But I expect the new shares to price and be sold before the end of 2021.

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