NEW YORK (TheStreet) -- Shares of Endurance International Group Holdings (EIGI) , a provider of cloud-based solutions, are up 9.75% to $16.10 on heavy volume trading after the company today announced the pricing of an underwritten public offering of 13 million shares of its common stock at a public offering price of $14.50 per share.
In the offering, Endurance is selling 3 million shares of common stock, with net proceeds to Endurance of approximately $41.3 million, after deducting underwriting discounts and commissions and estimated offering expenses, and certain existing stockholders are selling 10 million shares of common stock.
In addition, certain selling stockholders have granted the underwriters a 30-day option to purchase up to an additional 1,950,000 shares of common stock. Endurance will not receive any proceeds from the sale of shares of common stock by the selling stockholders. The offering is expected to close on or about November 26, 2014, subject to customary closing conditions.
Endurance expects to use the net proceeds from the offering for general corporate purposes, which may include the repayment and refinancing of debt, working capital and capital expenditures.
In addition, Endurance believes that opportunities may exist from time to time to expand its current business through acquisitions of or investments in complementary companies, businesses, products or technologies. While Endurance has no current agreements, commitments or understandings for any specific acquisitions or investments at this time, Endurance may use a portion of the net proceeds for these purposes.