Vitesse Semiconductor Corp. will raise $23.2 million in a secondary offering, the company announced on Thursday.
The Camarillo chip maker will sell nearly 7.5 million shares of its stock to the public for $3.35 a share, a 12 percent discount to its closing price Wednesday. The money will be used for working capital and general corporate purposes.
The company has also given underwriters a 30-day option to purchase an additional 1.1 million shares. The offering is expected to close June 17.
In recent weeks, Vitesse has announced a series of new customer contracts, including Planet Technology Corp., a network equipment manufacturer for small businesses in Taiwan, and FreeScale, another chip maker and hardware manufacturer in Austin, Texas.
Needham & Company, LLC is acting as the sole book-running manager of the offering. Craig-Hallum Capital Group LLC, The Benchmark Company, LLC and Northland Securities, Inc. are acting as co-managers.
Shares fell 43 cents, or 11 percent, to close at $3.39 on the Nasdaq.