Internap Network Services Corp. (Nasdaq: INAP) filed Tuesday for a public stock offering of 35 million common shares.
The Atlanta-based company said it plans to use the proceeds from the offering for general corporate purposes, which may include capital investments in its network access point infrastructure and systems and debt repayment.
Holders of INAP plan to sell about another 10.7 million shares, according to a registration statement Internap filed with the SEC. The company said it will not receive any proceeds from the sale by holders.
The co-lead managers for the offering are SG Cowen and CIBC World Markets. Thomas Weisel Partners LLC, Jefferies & Co. Inc. and Needham & Co. Inc. will assist.
After the offering there will more that 263.7 million shares outstanding in the company.
Shares of INAP closed sharply down 37 cents, or 14 percent, to close at $2.28. The company said it has applied to list its shares on the American Stock Exchange.