Twilio Shares Drop After Discounted Pricing Of Follow-on Offering

Shares of Twilio Inc. plunged 7% in premarket trade Friday, the morning after it priced its follow-on offering. Twilio said late Thursday that the offering would encompass 7 million shares of Class A common stock at $40 a share, which is 9.4% below Thursday's closing price. Twilio will offer 641,222 shares and selling stockholders will sell 6.36 million. Twilio will not receive proceeds from the shares sold by stockholders. Underwriters have a 30-day option to purchase up to 1.05 million additional shares at the public offering price.