San Diego-based Airgain Inc. — which makes antennas for mobile and household devices — plans to sell up to $46 million of its common stock in a follow-on offering.
The secondary offering far surpasses the company’s initial public offering of $12 million, which closed in August.
According to a regulatory filing with the U.S. Securities and Exchange Commission, Airgain will sell $20 million shares, and stockholders will sell another $20 million. On top of that, Airgain will grant underwriters a 30-day option to buy up to $6 million shares of additional common stock from the company.
The SEC document states that Airgain will not receive any of the proceeds from the sale of shares by stockholders.
The remaining cash raised, however, will be used for working capital and general corporate purposes, including sales and marketing activities, product development and capital expenditures.
The company might also use the new cash for “the acquisition of, or investment in, technologies, solutions or businesses.”
Airgain ended San Diego’s 15-month drought of local IPOs back in August, and the company’s stock (Nasdaq: AIRG) has climbed nearly 200 percent in the past three months to $23.31 per share at midmorning on November 25.
Following the announcement of the secondary offering, however, the company’s stock was down 13.5 percent.