It's just a no-brainer kind of thing when you're giving such a huge discount to the uderwriters. They can buy a bunch of additional shares at $12 and the company got another $7 million. So if one thinks the offering was a good deal on balance despite the stock getting pulverized then it is a good thing they sold some more and raised some more money. If one thinks the offering was bad then the over-allotment sale was bad. Bottom line it doesn't matter much.