Cree shares take a hit after LED maker announces 11 million share offering
A Cree LED streetlight
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DURHAM, N.C. – LED and semiconductor firm Cree (Nasdaq: CREE) is looking to raise cash by offering 11 million shares of stock.
Cree shares closed at $38.40 on Tuesday, up 96 cents. However, shares fell 3.7 percent, or $1.43, in after-hours trading following the announcement about the stock offering. Its 52-week high is $38.97.
In trading Wednesday, shares were down 67 cents to $37.73.
So far this year Cree’s stock has risen sharply as demand for LED lighting has grown. On Dec. 5, its shares traded as low as $13.13.
In a statement, Cree said it would use the proceeds “from the offering for anticipated capital expenditures of approximately $150 million in fiscal year 2010 and additional future capital expenditure needs with the remainder being used for general corporate purposes, including working capital and potential strategic investments.”
The offering is being handled by J.P. Morgan Securities, Bank of America Merrill Lynch, Piper Jaffray, Morgan Keegan, Oppenheimer and America’s Growth Capital.
The underwriters have the option to purchase up to 1.65 million additional shares.
Copyright 2012 WRAL Tech Wire. All rights reserved.
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