SWS Group selling 4.1 million shares of stock

AP News
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Posted: Dec 01, 2009 7:02 PM

Investment and financial services company SWS Group Inc. on Tuesday said it commenced a public offering of 4.1 million shares of its common stock.

The underwriters will be granted a 30-day option to purchase up to an additional 615,000 shares if demand exceeds initial supply.

The company intends to use the net proceeds for general corporate purposes and to support continued growth or potential acquisitions.

SWS shares closed regular trading Tuesday up 24 cents, or 2 percent, at $12.68, then slipped 78 cents, or 6.2 percent, to $11.90, in aftermarket electronic trading. The company currently has about 27.6 million shares outstanding; the new stock sale will dilute current shareholders' stakes.