Shares of Salt Lake-based Overstock.com Inc., an online seller of discounted brand-name electronics and other merchandise, slid 10 percent Monday after the company said it plans to sell 1.5 million new shares.
The offering, to be managed by WR Hambrecht + Co. and JMP Securities LLC, was announced by the company after markets closed Friday.
Following the offering, Overstock.com's shares outstanding will increase about 9 percent to 18.1 million, not including those set aside for overallotments, from 16.6 million as of March 31. Additional shares tend to dilute future earnings.
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Shares of Overstock.com lost $3.82 to close at $32.78 on the Nasdaq Stock Market.