SAN MATEO, Calif. (AP) — WageWorks Inc. said Thursday that it will sell an additional 1 million shares of its stock, and company shareholders will sell 5 million shares.
WageWorks provides employee spending account benefits programs which went public in May.
The company said the offering priced at $17.50 per share, a discount of 4.1 percent to Wednesday's closing price.
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The shareholders also plan to sell 339,000 shares of stock that will be issued when warrants are exercised. WageWorks won't get any money from the sale of the 5 million shares, but it could get as much as $1.6 million if all of those warrants are exercised.
The underwriters of the offering will have an option to buy another 900,000 shares. WageWorks said it will use its proceeds from the offering for working capital and general corporate purposes.
WageWorks shares rose 7 cents to $18.31 in morning trading. Its shares hit a 52-week high of $18.87 in mid-September but are still 81 percent above their low of $10.12 in May.
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