Palm Increases Public Offering, Sets Pricing

Palm (NSDQ: PALM) has increased the size of the public offering it announced yesterday, when it said it would resell 18.5 million common shares owned by Elevation Partners. It has since expanded the offering to 23.125 million shares (including the 18.5 million held by Elevation) and announced the price of the offering will be $6.00 per share. After costs and paying Elevation the $49 million the fund paid for the shares, Palm will receive approximately $83.9 million, which it will use to strengthen its working capital position and to further bolster the resources it is devoting to the launch of the Palm Pre and future product-development efforts. Elevation will use the money to buy shares at the offering price, which will net it about 8.17 million shares. The underwriters will also have a 30-day option to buy about 3.5 million shares to cover over-allotments. (release)