Under Armour Inc. said yesterday that it had raised the number of shares its founder and other early investors plan to cash in and set the price of those shares at $34.
The Baltimore athletic-wear company first announced May 10 that investors planned to sell 6.8 million shares with more than 1 million additional shares available if the deal's underwriters need to cover over-allotments. Yesterday, it raised the number to 7.3 million shares of its Class A common stock.
The deal is the first major stock sale since the company became a public entity last year.
Chief Executive Officer Kevin A. Plank, the former University of Maryland football player who founded the maker of sweat-resistant clothing, plans to sell 1.5 million shares, or about 10 percent of his holdings, according to a filing with the Securities and Exchange Commission.
Rosewood Capital, a San Francisco investment firm that put $12 million into the company three years ago, is cashing in its entire investment in the company - 3.6 million shares.
The remaining shares will be sold by executives and employees of the company. Under Armour won't make any money from the deal.
The company's shares rose 22 cents, or less than 1 percent, yesterday to close at $34.40 on the Nasdaq stock market.
Under Armour referred questions to a public relations firm that handles its financial matters. The firm did not return phone calls.
The plans come after the expiration of a "lockout" agreement that prevented the sale of shares for 180 days from Under Armour's Nov. 23 initial public offer filing with the SEC.
Sales like this are common after a private company becomes a public entity as companies such as Rosewood look for a return on their investment.
"It's not uncommon when you have private money in to be able to pay out your private investors," said Julia Spicer, executive director of the Mid-Atlantic Venture Association, a venture capitalist trade group. "Because that's considered early money and risk money. They've taken a lot of risk for developing a new enterprise."