Stock Offerings: Two Harbors

Two Harbors Investment surged after cancelling a proposed stock offering.
Author:
Publish date:

NEW YORK (

TheStreet

) --

Two Harbors Investment

(TWO) - Get Report

surged in early trading Friday after the company cancelled a proposed stock offering, allaying fears of shareholder dilution.

Two Harbors Investment cancelled its proposed public offering of 14 million shares of common stock, having determined that the available share price "would result in an unacceptable dilution of book value to existing shareholders." Two Harbors initially filed the registration for the offering on March 18. Shares were surging on the news, up 53 cents, or 6.1%, to $9.28.

Curiously, Two Harbors shares traded below $9 per share for nearly all of Thursday's session before spiking in the last minutes of trading, finishing the day up 4.5% at $9.25.

Several companies that announced secondary offerings were jumping after announcing the offering price.

STR Holdings

(STRI)

priced its offering of 7 million shares at $18.75. The offering, which is being done on behalf of certain stockholders, was announced Monday. STR Holdings will not receive any proceeds from the offering. Underwriters were granted the option to purchase up to an additional 1.05 million shares.

After falling as low as $18.50 on Monday, STR Holdings shares have bounced back and were lately up 7.5% to $20.48.

CF Industries

(CF) - Get Report

also gained ground after the fertilizer company said it will offer 11.23 million shares of common stock priced at $89 per share. Proceeds from the offering will be used to a $1.75 billion senior secured bridge facility used to fund the acquisition of

Terra Industries

, which closed Thursday. Underwriters were granted the option to purchase up to an additional 1.7 million shares to cover overallotments. CF Industries was up 2% to $91.77.

Alphatec Holdings

(ATEC) - Get Report

was also trading higher after the medical technology company said it will offer 16 million shares of common stock priced at $5 per share for net proceeds of $36.8 million. Half of the shares being offered are being sold by a selling shareholder. Underwriters were granted the option to purchase up to an additional 2.4 million shares to cover overallotments. After retreating at the open, Alphatec shares were lately rising 3% to $5.77.

On the other hand, several other companies were out with secondary offerings and saw their share prices tank on dilution concerns. Among them,

Hansen Medical

(HNSN)

dropped 14.2% to $2.17 after the company said it will offer 14 million shares of common stock priced at $2 per share for gross proceeds of $28 million. Underwriters were granted the option to purchase up to an additional 2.1 million shares to cover overallotments. For comparison, Hansen's 50-day average daily share volume is only 379,000.

AEterna Zentaris

(AEZS) - Get Report

plummeted 23% to $1.27 after the company said it will offer 11.1 million shares of common stock priced at $1.35 per share for gross proceeds of $15 million. AEterna also said it will issue warrants to acquire an aggregate of approximately 4.4 million common shares at an exercise price of $1.50 per share, which placed further pressure on shares.

NPS Pharmaceuticals

(NPSP)

said it will offer 9 million shares of common stock priced at $5.50 per share, up from the previous announced base offering of 7.5 million shares. Underwriters were granted the option to purchase up to an additional 1.35 million shares to cover overallotments. NPS shares were losing 5.1% to $5.90, bouncing from an earlier low of $5.60.

Image Sensing Systems

(ISNS) - Get Report

saw a slight dip in share price after the company said it will offer 798,000 shares of common stock priced at $12.25 per share for net proceeds of $8.9 million. Shares were down 0.8% to $13.15

-- Written by Robert Holmes in Boston

.

Follow Robert Holmes on

Twitter

and become a fan of TheStreet.com on

Facebook.