Telestone Tumbles After Pricing Stock Offer

NEW YORK (TheStreet) -- Shares of Telestone Technologies were sitting atop the Nasdaq's percentage decliners list on Wednesday after the China-based networking equipment provider gave a steep discount in its latest capital raise.

The company announced before the opening bell that it priced an offering of 1.675 million common shares at $12 each, a level that 15% below Tuesday's closing price of $14.13. Telestone expects to complete the sale on Nov. 30. Net proceeds are estimated at $18.9 million, not including an overallotment option allowing for the potential sale of an additional 251,250 common shares, if exercised.

The stock was down 14.9% to $12.02 in recent trades. Volume of just below 3 million was more than 13 times the issue's trailing three-month daily average of around 220,000. It's been a volatile year for Telestone. Overall, the stock is down nearly 29% year-to-date, but even at current levels, it's bounced 65% since scraping a 52-week low of

By admin posted about 1 year ago

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