Palm Stock Shoots Up on Fundraising Plan

Palm stock surged as the cash-needy smart phone maker bumped up the number of shares it plans to sell to 23.1 million from the 18.5 million originally targeted, at $6 per share.
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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) - Get Report

, has helped

push the stock

up 100% so far this year.

The Palm Pre is expected to compete with

Apple's

(AAPL) - Get Report

popular iPhone sold by

AT&T

(T) - Get Report

and the

Research In Motion

(RIMM)

BlackBerry Storm sold by

Verizon

(VZ) - Get Report

.

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