Underwriters have a 12.6M-share overallotment option, and Goldman is the sole bookrunner. J.C. Penney (JCP) only says it will use the proceeds for "general corporate purposes." (PR)
Depending on the use of the overallotment option, the offering stands to increase Penney's share count by 38%-44%.
Zero Hedge wonders if Penney is in violation of SEC Rule 10b-5, given CEO Mike Ullman reportedly told investors his company doesn't see the need to raise capital this year, and will see how it does in FQ4.
Shares now -5.7% AH.
Earlier: J.C. Penney announces 84M-share stock offering
Update: A Penney spokeswoman denies Ullman told investors his company doesn't need to raise more capital this fiscal year. She says he simply told them Penney has enough liquidity.