Why Chegg Shares Jumped Today
Shares of Chegg (NYSE: CHGG) have jumped today, up by 10% as of 1:10 p.m. EDT, after the company announced pricing for its follow-on offering.
Chegg had announced its proposed offering on Monday, in which it would sell 8 million shares of common stock. Underwriters would have a 30-day option to purchase an additional 1.2 million shares of stock. The proceeds would be used for working capital and other general corporate purposes. The offering has now priced, and Chegg will sell 10 million shares at $13.50 each, raising more capital than expected. Underwriters have a 30-day option to purchase an additional 1.5 million shares. The offering is expected to close on Aug. 8.
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Source: Fool.com
