GrubHub Sinks: Insiders, Funds To Cash Out Part Of Stake,

GrubHub Inc.

plans to offer $500.8 million of common stock held mostly by insiders and hedge funds. GrubHub, which provides an online platform for restaurant deliveries, saw its shares drop 5 percent on the news. The company completed a $192 million intial public offering in April and its shares have since gained 25 percent. Ten officers and directors as a group expect to reduce their holdings in the company to 23.06 percent from 29.23 percent. Selling the largest stake among insiders, director Justin L. Sadrian will cut his holdings to 4.8 percent from 7.7 percent and director Benjamin Spero will reduce holdings to 6.7 percent from 9.6. Among funds, Spectrum Equity will cut its stake to 6.7 percent from 9.65, while about a dozen other funds will cut their holdings by a smaller proportion. Shares to be sold by GrubHub are expected to net $50.7 million for the company, with proceeds earmarked for general corporate expense including potential investments and acquisitions. GrubHub traded recently at $40.79, down $1.87.