Palm raises $313 million; Bolsters war chest

Palm on Wednesday said it raised $313 million from its public offering of 20 million shares. Palm shares showed strong demand by pricing at $16.25 a share.

Last week, Palm said it would float more shares to bolster its cash position. When Palm delivered its first quarter results shares bounced around in the $14 to $15 range. All things considered, Palm's pricing (statement) was about as good as it gets.

Palm added that underwriters---Goldman Sachs, J.P. Morgan and RBC Capital---have a 30-day option to buy 3 million additional shares. If that option is exercised Palm may get a few more dollars out of the deal.

Many companies---banks, airlines and a bevy of others---have used the recent stock market run-up to float more shares and bolster their balance sheets.

Palm said it will use the proceeds for working capital and general corporate purposes. As of Aug. 31, Palm had $212 million in cash and short-term investments. The additional $313 million will come in handy as Palm aims to roll out more WebOS devices.