Overstock Prices Share Offering at $84.50 as Shares Trade Near 52 Week High

In just a few months, Overstock (NASDAQ:OSTK) has gone from a not so hot stock to red hot and the company is taking advantage of its newfound popularity.

This past week, Overstock announced a share sale priced at $84.50/share. Overstock will be offering 2.1 million new shares – an increase from a previously announced 1.7 million share sale. As well, underwriters will be granted an additional 315,000 shares if they are interested.

The shares will float on August 14th (this Friday) raising $177.45 million in gross proceeds.

BofA Securities and Credit Suisse are book-running managers while Piper Sandler, Needham & Company, D.A. Davidson & Co. and Wedbush Securities are acting as co-managers of the offering.

But how times have changed.

A year ago, Overstock shares were hovering at less than $20 a share. The e-commerce and blockchain firm hit a COVID 52 week low of just over $2. But during the Coronavirus lockdown, a shift to online shopping and a management transition, have revived expectations for the once struggling firm. Today, Overstock shares are trading around $90.

The reanimation in Overstock shares is good news for the company’s blockchain innovation subsidiaries like tZERO. When shares in Overstock fell down and couldn’t get back up, this was very bad news for its money-losing blockchain ventures. Today, Overstock can use its share to generate cash. This money can be invested back into growth ventures  – like its blockchain operations.


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