RealD went public in July, priced at $16 per share. At the time of this writing, 4 months later, the stock is selling at just over $26, up more than 60%. It appears that RealD’s investors are so happy that they want to take the money and run. RealD has filed for a 2nd IPO, in which 7,815,001 shares will be sold, with an additional 1,172,250 shares available to cover over-allotments. At its current price, the stock sale will generate over $233M.
The source of the stock has not been announced, although it is stated that no new stock is being sold by RealD. Presumably the sellers will be principal shareholders William Budinger, Shamrock Holdings, and Pequot Capital. Shamrock recently purchased Screenvision for $160M.
Significant shares in RealD are held by US exhibitors AMC, Regal, and Cinemark. Based on Cinemark’s recent SEC 10K filing, the company now holds approximately $10M in RealD stock, with options that will give it another $20M in holdings. The options will vest as Cinemark makes its installation targets. Cinemark, however, cannot unload its stock until January 2011. Presumably, the other exhibitors have similar deals.
The major shareholders collectively owned over 13M shares pre-IPO, and sold 3.1M shares during the 1st IPO. If all of the stock to be sold were theirs, the 2nd IPO would come close to unloading their remaining holdings. However, it’s more likely that some of the shares to be sold will come from other shareholders. Time will tell as more filings take place.
