Hovnanian to sell 14M shares, stock drops in late trading
RED BANK, N.J.—Hovnanian Enterprises Inc. plans to sell 14 million shares, the homebuilder said Wednesday.
The company did not announce any pricing information. Its stock closed Wednesday at $11.13, which means the sale would raise about $155.8 million in gross proceeds. It said it plans to use the money for "general corporate purposes."
In electronic aftermarket trading, Hovnanian shares fell 78 cents, or 7 percent, to $10.35.
Hovnanian, like many major builders, has been losing money amid sharp sales and order declines and hefty charges to write down the value of unsold homes still on its books.
The builder plans to offer the underwriters the option to buy another 2.1 million shares to cover excess demand.
© Copyright 2008 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
rising
falling 