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WageWorks prices follow-on public stock offering

SAN MATEO, Calif. (AP) -- WageWorks, which provides health, commuter and other employee benefits, said Wednesday that a follow-on public offering of about 5.6 million shares was priced at $24 apiece.

This is a slight discount to its Tuesday closing price of $24.07.

WageWorks Inc. is selling 500,000 shares, while certain stockholders are selling about 5.1 million shares.

The underwriters have an option to buy up to 844,667 more shares from the selling stockholders to cover any excess demand.

WageWorks won't receive any proceeds from the shares being offered by the selling stockholders.

The company said that the offering's proceeds will be used in part to provide additional working capital and for general corporate purposes such as ongoing investments in technology and development and for capital expenditures.

Shares of WageWorks added 2 cents to $24.09 in morning trading.