Online direct marketer FreeShop.com Inc., Washington, DC, filed yesterday to sell one million shares of common stock while some of its shareholders plan to sell two million shares.
The company expects to net about $33.7 million from the sale of its shares, which would be used to expand marketing and brand name promotion, according to a prospectus filed with the Securities and Exchange Commission.
The selling stockholders, which include Federated Department Stores Inc.’s Fingerhut Cos. Inc. and company executives, would retain the proceeds from the sale of their shares, the filing said.
After the offering, there would be about 16.5 million shares of common stock outstanding in FreeShop.com.
The underwriters, led by Deutsche Banc Alex. Brown, have been granted the option to purchase an extra 450,000 shares in the event of heavy demand.
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