NEW YORK (TheStreet) -- Shares of GigPeak (GIG) are plummeting by 18.77% to $2.12 on heavy trading volume early Friday afternoon, after the semiconductor supplier priced its public offering at a significant discount to recent prices.
GigPeak announced that its public offering of 11.3 million newly issued shares priced at $2 each, which is 23% lower than Thursday's closing price of $2.62.
Shares haven't closed as low as $2 since Oct. 16, 2015, according to MarketWatch.
The offering will increase the amount of shares outstanding by roughly 54%.
About 3.97 million shares of GigPeak have been traded so far today, well above its average trading volume of 531,515 shares per day.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.
GigPeak's strengths include its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, compelling growth in net income and good cash flow from operations.
You can view the full analysis from the report here: GIG
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.