A10 Networks shares drop after $200M bond offering announcement

Shares of A10 Networks (NYSE:ATEN), a San Jose, California-based network security firm, fell 10.7% in premarket trading to $17.45 on Thursday, marking their lowest level in over three months.

The decline follows the company’s announcement of a $200 million capital raise through a priced offering of 2.75% convertible bonds due in five years.

The bonds, which carry an initial conversion price of $23.46, represent a 20% premium to the stock’s last closing price.

A10 Networks plans to allocate approximately $44.2 million of the net proceeds to repurchase its own shares, with the remainder earmarked for working capital and general corporate purposes, including potential future acquisitions.

A10 Networks, with a market capitalization of approximately $1.4 billion according to LSEG data, has seen its stock perform strongly in recent years.

Through Wednesday’s close, the stock was up about 6% year-to-date in 2025, building on a robust 40% gain in 2024.

The stock reached an intraday record high of $21.89 on February 14 before the recent downturn triggered by the capital raise announcement.