NEW YORK (TheStreet) -- Shares of Platform Specialty Products (PAH) are climbing 1.10% to $26.94 on heavy trading volume after the company announced the pricing of 15.8 million shares of common stock in its public offering.
Platform produces high-technology specialty chemicals and provides technical services. The business involves the formulation of a broad range of solutions-oriented specialty chemicals, which are sold into multiple industries, including agrochemical, animal health, electronics, graphic arts, plating, and offshore oil production and drilling.
The company priced the 15.8 million shares of its common stock at a public offering price of $26.50 per share.
Underwriters were granted a 30-day option to purchase an additional 2.38 million shares of its common stock. The offering will close on June 29, 2015.
The net proceeds from the offering will be used to fund working capital and future acquisitions, including a portion of the consideration and related fees payable in connection with the previously announced acquisition by Platform of the Electronic Chemicals and Photomasks businesses of OM Group (OMG), the company said.
Separately, TheStreet Ratings team rates PLATFORM SPECIALTY PRODUCTS as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate PLATFORM SPECIALTY PRODUCTS (PAH) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and weak operating cash flow."