The Associated Press October 22, 2010, 5:31PM ET

Vera Bradley sees strong demand for IPO

Handbag and accessories maker and seller Vera Bradley Inc. said Friday that the underwriters of its initial public offering tapped its option to buy 1.65 million more shares to cover high demand.

That brought the offering to 12.65 million shares in all, with 4 million sold by Vera Bradley and 8.65 million by shareholders.

On Thursday, the company said it priced the shares at $16 apiece, raising $176 million. It plans to use the funds to pay notes due to shareholders.

Vera Bradley's bags are sold in the company's 35 stores and 3,300 other stores.

R.W. Baird and Piper Jaffray were lead managers on the deal.

The company's shares edged up in after-hours trading Friday after ending the regular session at $26.90, up $2.05 or 8.3 percent.

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