Shares of 2U Inc. (NASDAQ: TWOU) were up 10.6% as of 3:00 p.m. EDT Thursday, after the online education platform company priced a public offering of common stock.
For perspective, today's move was partly a rebound from a more modest decline yesterday; 2U stock understandably fell as much as 5.5% in Wednesday's trading, and then settled to close down around 2.4% after the company first proposed a dilutive offering to consist of 3,000,000 shares offered by the company, and 150,000 shares offered by selling stockholders. The deal's underwriters also had a 30-day option to purchase up to 472,500 additional common shares from 2U.
Today, however, 2U more than recouped yesterday's decline after announcing the offering had been priced at $49.00 per share and increased to 3,650,000 shares, including 3.5 million from the company and 150,000 offered by the selling stockholders. 2U also increased the size of its underwriters' 30-day option to purchase up to an additional 547,500 shares at the public offering price. 2U should receive gross proceeds of $171.5 million from its portion of the deal.
Source: Fool.com