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Lab-grown diamond producer Adamas One (NASDAQ:JEWL) stock shot up nearly 120% following its downsized $11M initial public offering on Friday.
Shares of Adamas opened at $8.60 after being priced at $4.50 per share. The stock recently changed hands at $9.77 at approximately 11:45 a.m. ET.
Adamas offered 2.5M shares priced at $4.50, which was at the bottom end of its previously stated price range. Underwriters received a 45-day option to buy up to 367K additional shares to cover any over-allotments. Alexander Capital is serving as lead bookrunner.
On Dec. 6, Adamas said in an updated filing that it intended to offer 2.5M shares priced at $4.50 per share, which would have raised around $10M. Selling stockholders planned to offer an additional 4.5M shares at the same price, which would have raised around $19M. Adamas One would not have received proceeds from the stockholder sale.
The deal was downsized from one proposed in November. Under that deal, Adamas said that shareholders intended to offer 4M shares priced between $4.50 and $5, which would have raised $19M if priced at the midpoint. The company, meanwhile, planned to offer 3.2M shares at the same price, which would have raised $15M if priced at $4.75 per share.
Based in Arizona, Adamas One produces lab-grown, ethically sourced diamonds for jewelry and industrial purposes.
Last month, online diamond merchant Blue Nile, which sells lab-grown and natural diamonds, agreed to be bought by Signet Jewelers (SIG) for $360M in cash.
Image and article originally from seekingalpha.com. Read the original article here.