Palm boosts stock offering, nets $83.9 million
Company's current lineup includes (from left) the Pre, Treo Pro, Centro, and Treo 800w.
(Credit: Palm)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.
Dawn Kawamoto covers enterprise security and financial news relating to technology for CNET News. E-mail Dawn. 
- by alex-cnet March 10, 2009 4:36 PM PDT
- This transaction probably has little to do with the rise in share price. Palm moves with the market and everything is up today. Considering that it is down even more in the past few weeks and that this rally will most likely not last long, take their stock value with a grain of salt. This is just day trading fluctuation.
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