Cloud communications company Twilio Inc. has filed for a second public offering of shares, following closely on its successful initial public offering in June.

Under the proposed offering, Twilio will make available approximately $400 million in shares, with a majority of the shares expected to be sold by existing stockholders. Twilio, cofounded by Chief Executive Jeff Lawson (above), added that it will not receive any proceeds from the sale of the shares.

Twilio’s public investors didn’t like the news. In Monday morning trading, shares were falling by more than 11 percent. It’s possible investors view the sale by insiders as indicating less confidence in future share price rises.

Twilio’s IPO in June was hailed as a return of happy days for public offerings, with stock in the company surging from an initial price of $15, up from an initial price guidance of $12-$14 a share, to close its first day of trading up 91.93 percent at $28.79. That gave the company a market capitalization of more than $2 billion.

At the time, analysts and fund managers attributed the success to a confluence of factors, from the company’s potential growth to the broader stock-market rally to T. Rowe Price Group Inc.’s backing the company’s stock offering.

Since then, Twilio has not disappointed investors. Second quarter results showed revenues rising by 70 percent and the number of active customers also increasing sharply. But the company still recorded a loss of $11 million, or 45 cents a share, larger than losses of $9.6 million for the same period in 2015.

Twilio said it expected to achieve revenues of between $253 million and $257 million by the end of the year, above an earlier forecast of $242 million but with a loss of between 28 and 30 cents a share.

Exit

According to VentureBeat, the secondary offering of stock is likely the result of the end of the 180-day lock-in agreement and would allow long-term investors and early employees to gain some liquidity from their shares.

Twilio stock closed regular trading on Friday at $60.58 per share on a market cap of $5.06 billion, up by a multiple of four over its IPO price. But as news of the secondary offering broke Twilio shares dropped 6 percent in after-hours trading to close at $57.03.

Goldman, Sachs & Co. and J.P. Morgan Securities LLC will act as joint book-running managers for the proposed offering. Allen & Company LLC; Pacific Crest Securities, a division of KeyBanc Capital Markets Inc.; JMP Securities LLC; William Blair & Company L.L.C.; and Canaccord Genuity Inc. will act as co-managers.

Image credit: Twilio