Conexant Prices Share Sale At $2.85 Per Share

NEWPORT BEACH, Calif. (AP) — Conexant Systems Inc. said Thursday is has priced its public offer to sell 7 million shares at $2.85 per share.

Investors sent the shares plunging after the announcement. Conexant shares fell 53 cents, or 16 percent, to $2.86 in afternoon trading.

The Newport Beach-based semiconductor company expects net proceeds of $18.4 million, or $21.2 million if the underwriters exercise their option to buy an additional 1.05 million shares to cover any overallotments.

Oppenheimer & Co. is the sole underwriter.

Conexant expected to use the proceeds to pay down debt, for working capital, capital expenditures and acquisitions.

The offer is expected to close on Sept. 29.