NEW YORK (TheStreet) -- Shares of Fairmount Santrol (FMSA) are rising 7.64% to $6.62 on heavy trading volume Thursday morning after the company announced a 25 million share offering and was upgraded at Piper Jaffray.

After yesterday's market close, the Chesterland, OH-based company announced the pricing of its underwritten public offering of 25 million shares of common stock for total gross proceeds of about $148.75 million.

Piper Jaffray raised its rating on shares to "overweight" from "neutral" and maintained its $8 price target, the Fly reports.

The firm cited the 25 million share offering as the reason for the upgrade, which it views as a deleveraging event.

Piper Jaffray also has a positive outlook on the frac sand market.

Last week, the stock tumbled after releasing preliminary results for the 2016 second quarter.

Fairmount Santrol is a provider of high-performance sand and sand-based products used by oil and gas exploration and production companies to boost productivity of their wells.

About 10.32 million of the company's shares changed hands so far today vs. its average 30-day volume of 2.15 million shares per day.

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