Palm boosts stock offering, nets $83.9 million
Company shares rise more than 9 percent in early morning trading after the smartphone maker increases the size of its secondary offering and prices the deal at $6 a share.
Palm shares rose sharply in early morning trading Tuesday, after the smartphone maker increased the size of its secondary offering and netted $83.9 million.
Palm resold 23.13 million shares, as part of a follow-on offering it announced the previous day. Although the company had initially anticipated offering only 18.5 million shares held by its investor Elevation Partners, Palm added more stock to the deal, which it priced at $6 a share.
Elevation received $49 million from the offering, while Palm netted $83.9 million. Palm plans to use the proceeds for working capital, as well as for bolstering its resources for the launch of its highly anticipated Pre smartphone.
Palm shares rose as high as 9.5 percent to $6.59 in early morning trading.