Internap Network Services is going to the Street to raise additional funds.
Inernap (AMEX: IIP) says it is making a public offering of 45.8 million shares of its common stock.
Shares of IIP opened this morning on the American Stock Exchange at $1.80 and have basically held. At this price, the public offering would be worth roughly $82.4 million.
Internap, based in Atlanta, recently moved to the AMEX from the Nasdaq, where it traded under the symbol INAP.
Of the 45.8 million shares to be offered, Internap says it will sell 35 million newly issued shares and selling stockholders will sell an aggregate of 10.8 million shares.
In addition, Internap says it will grant the underwriters an over-allotment option to purchase up to an additional 5.75 million shares of common stock, and the selling stockholders will grant the underwriters an option to purchase up to an additional 1.13 million shares of common stock, to cover over-allotments, if any.
Internap says reports recently issued by third parties indicating the company intends to make a public offering of up to 100 million shares of its common stock are incorrect.
The offering will be made through an underwriting syndicate led by SG Cowen as sole book-runner. CIBC World Markets will act as co-lead manager, and Thomas Weisel Partners LLC, Jefferies & Co. and Needham & Co. will act as co-managers.