Shares of Comtech Telecommunications Corp. fell more than 14 percent to $13.83 Friday after the company priced a 7.15 million-share stock offering $2.11 lower than Thursday’s closing price of $16.11.
Michael Porcelain, chief financial officer and senior vice president of the Melville-based maker of advanced communications equipment for military and civilian markets, said the $14 per share offering swelled the number of shares outstanding, previously at 16.5 million, by 43 percent.
The executive said it’s not unusual for small-capitalization companies to price such deals below the market price.
“It’s in the normal range for a small-cap company,” he said. “There was strong demand. The deal was oversubscribed.”
Porcelain said that $75 million of the $100 million in proceeds will be used to pay down debt and the remaining $25 million will be used for acquisitions and general corporate purposes.
The offering, made through lead underwriters Citigroup and Jefferies LLC, is scheduled to close on June 22.