Updated from 11:14 a.m. EDT

Here's a pleasant shocker: Palm ( PALM) can't sell many phones, but the tech shop has found strong demand for its stock sale.

The cash-needy smartphone maker bumped up the number of shares it plans to sell to 23.1 million from the 18.5 million originally targeted. The shares are priced at $6, and Palm expects to raise $83.9 million in cash from the offer.

On Monday, Palm said it was going to resell 49% of a recent $100 million investment Elevation Partners had made in Palm in December.

Elevation has invested $425 million in Palm in an effort to bring the tech shop back from the brink of collapse and regain its leadership position in smartphones. The efforts have delivered in the form of a well-received touchscreen Palm Pre phone.

To date, the prospect of a successful device, sold exclusively by Sprint ( S), has helped push the stock up 100% so far this year.

The Palm Pre is expected to compete with Apple's ( AAPL) popular iPhone sold by AT&T ( T) and the Research In Motion ( RIMM) BlackBerry Storm sold by Verizon ( VZ).

Palm shares were up 72 cents, or 12%, to $6.74 in recent trading.