Vitesse Semiconductor Corp. raised $40.2 million in a public offering of its common stock after strong demand prompted underwriters to sell additional shares, the company announced on Tuesday.
The Camarillo supplier of integrated circuits for the communications industry sold 18.7 million shares at a price of $2.15 per share. The company, which had expected to raise $30 million, will receive $37.5 million after expenses.
The underwriters sold their full over-allotment of shares due to demand. Needham & Co. acted as the sole book-running manager of the offering. Craig-Hallum Capital Group and Imperial Capital acted as co-managers
The proceeds of the sale strengthen Vitesse’s balance sheet and give the company flexibility in handling debt principal due in 2014, said Chief Executive Chris Gardner.
“This will help us toward our goal of driving long-term growth and profitability,” he said, in a prepared statement.
Shares in Vitesse closed up 12 cents, or nearly 5 percent, to $2.73 on the Nasdaq.