PHILADELPHIA (AP) -- Discount retailer Five Below has priced a secondary offering of 6 million shares at $36 each, a 6 percent discount to Tuesday's closing price.
Shares of Five Below Inc. dropped $2.69 or 7 percent, to $35.51 in late morning trading Wednesday. The stock closed at $38.20 on Tuesday. Five Below went public in July 2012.
The company said that the shares are all being offering by selling stockholders, including some members of management and affiliates of certain board members.
The selling stockholders are giving the underwriters a 30-day option to buy an additional 900,000 shares.
Five Below, which sells games, candy and other goods for $5 or less, won't receive any proceeds from the offering.
Earlier this month the Philadelphia retailer reported that it swung to a fiscal first-quarter profit, thanks to a strong increase in sales.
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