NEW YORK (AP) -- Shares of Mitek Systems dropped in premarket trading Tuesday as the mobile imaging software company announced plans for a public stock offering.
Late Monday, Mitek said that it plans to sell all of the shares in the proposed offering. It did not disclose how many shares are expected in the offering.
The San Diego company anticipates giving the underwriters a 30-day option to buy up to an additional 15 percent of the shares in the offering to cover any excess demand.
The planned public stock offering will increase Mitek's outstanding shares, which dilutes the value of existing shares held by stockholders. Mitek currently has about 27 million outstanding shares, according to FactSet.
Mitek Systems Inc.'s stock declined 58 cents, or 8.9 percent, to $5.94 before the market open. The shares closed at $6.52 on Monday and have more than doubled their value for the year to date.