Plug Power Inc (NASDAQ:PLUG) said Friday that its has priced its secondary offering of 22.6 million shares of the common stock at $5.50 apiece. Morgan Stanley and Barclays Capital are acting as book-runners. The offering will close on April 30, subject to customary closing conditions. Plug Power has granted underwriters a 30-day option to purchase up to 3.39 million shares, up from 2.25 million that the company had proposed in its original filing.

Plug Power

Demand for Plug Power’s new shares is strong

Plug Power Inc (NASDAQ:PLUG) shares dropped 6.32% to $5.63 in early trading on Friday. The Latham, New York-based company expected to raise $124.3 million of gross proceeds in the offering. Excluding underwriter commissions, discounts and other expenses, net proceeds from the secondary will be $116.3 million. Plug Power said it will use the proceeds for working capital and general corporate purchase, which may include potential acquisitions and capital expenditures.

Plug Power Inc (NASDAQ:PLUG) had originally planned to sell 15 million shares in the offering. The increase in the deal size to 22.6 million shares would dilute the existing shareholders’ stake even more. But it shows that the demand is strong for the new shares. The fuel cell maker’s incredible run began after the company struck a deal with Wal-Mart Stores, Inc. (NYSE:WMT) to supply 1,700 fuel cell-powered forklifts. In March, Citron Research called it a “casino” stock” and said Plug Power isn’t worth more than 50 cents a share, causing a more than 40% decline in the stock. Earlier this month, the company acquired fuel-cell stacks maker ReliOn for $4 million.

Plug Power expects to turn profitable by the end of this year

This was Plug Power Inc (NASDAQ:PLUG)’s fifth offering since the beginning of 2013. The latest offering exceeds $102 million the company raised in its 1999 IPO. Plug Power shares traded at just $0.16 on April 26, 2013. Shares soared to an all-time high of about $11 in March before falling into the $6-$8 range. The stock has become a favorite of day traders and short sellers. Plug Power forecasts its revenues to double this year, and turn profitable by Q4 of 2014.