Sanders Morris Harris (SMHG) plunged 12% Friday after the brokerage house priced a 5 million-share offering at $12.50 a share.

The offering is being made through an underwriting syndicate led by Jefferies and Sandler O'Neill. The move comes just two months after the Houston-based asset manager set plans to close a unit and to take a $4.5 million goodwill-impairment charge for the decline of a shrinking money-management operation.

Shares fell $1.65 to $12.51.