NEW YORK (
(FIVE - Get Report)
shares fell 6.4% to $35.76 after it priced a secondary offering on Wednesday that could present selling shareholders as much as $216 million in proceeds if orders are met.
Five Below said it priced 6 million shares at $36 a share. The offering price is a 5.7% discount to Five Below's closing share price on Tuesday.
The pricing of the common stock offering comes six days after the discount accessories, toy and craft retailer, known for selling products at $5 and below, canceled the original
of 8.6 million shares, citing poor market conditions.
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The U.S. stock market had a rough week last week. The Dow Jones Industrial Average plunged more than 300 points on Thursday -- the most in 19 months -- on fears the
will start to reduce its bond-buying stimulus program. Fed Chairman Ben Bernanke's comments also lent credence to the notion that interest rates may be adjusted upward.
Shares of Five Below declined more than 4% over the past week.
The shares were being sold by the Philadelphia-based company's current shareholders, who included some of the company's executive management and affiliates of the board of directors, it said. The company was not expected to receive any proceeds from the sale. Underwriters, which include
, have been granted a 30-day option to purchase an additional 900,000 shares of common stock.
-- Written by Laurie Kulikowski in New York.
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