Why 21Vianet Stock Skyrocketed Today
Shares of 21Vianet (NASDAQ: VNET) skyrocketed today, booking gains of 17% at the close, after the company reported pricing for a previously announced follow-on offering. The deal priced at a very modest discount to yesterday's close, allowing the company to raise capital on favorable terms.
The offering priced at $20.75 per American depositary share (ADS), compared to yesterday's close of $21.09. Companies often price secondary offerings at a discount to incentivize investors to buy shares through the offering instead of in the public market, and in this case the discount was rather minimal.
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Source Fool.com