Palm sets price of expanded secondary stock offering
In a filing with the SEC this morning,
Palm announced that the price of their secondary stock offering will be set at $16.25 a share, a discount of about 10% off yesterdays 52-week high closing price. The offering has also been expanded from the 16 million shares that Palm announced during
last weeks conference call, instead Palm will be selling 20 million shares of common stock, though the date for the secondary has not yet been set.
Palm is setting aside $35 million of the stock for purchase by venture capital firm Elevation Partners (who currently own approximately one third of Palm) and an additional $2 million for personal purchase by Roger McNamee, a founding partner of Elevation Partners. Three million additional shares of common stock will be available to the underwriters should the offering the oversubscribed (more buyers than available stock). At the 20-million share offering, Palm expects to net $313,140,000, if the over-allotment option is exercised Palm could see proceeds of up to $359,940,000. Either way, its a lot of money for Palm, who ended the last fiscal year with $211 million cash and cash equivalents on hand.
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