GigPeak's Stock Tumbles After Share Offering Prices At a Big Discount

Shares of GigPeak Inc. plunged 21% in premarket trade Friday, after the semiconductor component maker's stock offering priced at a significant discount to recent prices. The company said its public offering of 11.3 million newly issued shares priced at $2.00 a share, 23% below Thursday's closing price of $2.62. That stock hasn't closed as low as $2.00 since and the lowest closing price Oct. 16, 2015. With 20.8 million shares outstanding as of Thursday, according to FactSet, the offering would boost the shares outstanding by about 54%. GigPeak said it expects to use the proceeds from the share sale for potential acquisitions. The stock has slumped 14% year to date through Thursday, while the PHLX Semiconductor index has climbed 7.2% and the S&P 500 has gained 3.5%.