Palm increases public offering and announces pricing

Palm Inc (NASDAQ:PALM) have announced that they will be increasing their size of its public offering of common stock, the new figure is now 23.125 million shares. The public offering price is now $6.00 per share, Palm will now receive around $83.9 million of net proceeds.

It is expected that Palm will use these proceeds to help strengthen its working capital position, as well as bolster its resources for the launch of the Palm Pre along with future product developments. Underwriters now have a 30-day option to purchase around 3.5 million additional shares of Palm’s common stock; this should cover over-allotments, if there is any.

This increase should help Elevation Partners recoup the $49 million that they originally paid for the units; they will also use those funds to buy approximately 8.2 million shares of Palm’s common stock at the new public offering price.

Source – Press Release