WageWorks shares rise on news of offering
NEW YORK (AP) — Shares of WageWorks Inc. rose Friday after the company said that it and some of its existing shareholders plan to sell about $100 million of its shares in a follow-on offering of stock.
THE SPARK: San Mateo, Calif.-based WageWorks, which went public in May, said late Thursday it expects about 80 percent of the shares to be sold in the offering would be sold by certain existing stockholders and about 20 percent would consist of newly issued shares.
WageWorks will not receive any proceeds from the sale of the shares by the stockholders.
THE BIG PICTURE: WageWorks is an on-demand provider of employee spending account benefits programs. It allows workers to use pre-tax earnings to pay for things like health care and commuting costs.
WageWorks said the proceeds of the primary portion of the offering will be used to provide additional working capital for the company and general corporate purposes, which could include the expansion of sales and marketing efforts, continued investments in technology and development and for capital expenditures.
William Blair and Stifel Nicolaus Weisel are serving as the offering's underwriters.
THE SHARES: Up 50 cents, or 2.9 percent, to $17.70 in afternoon trading. Over the past 52 weeks, the company's shares have traded between $10.12 and $18.55.