Hhgregg issues 3M shares of common stock to fund expansion

Indianapolis Hhgregg said Thursday it has begun a public offering of 3 million shares of common stock.

The underwriters have a 30-day option to buy up to an additional 450,000 shares from the company to cover overallotments, if any, the consumer electronics chain said.

The retailer estimated net proceeds of $46.7 million, or $53.8 million if the overallotment option is fully exercised, based on an assumed public offering price of $16.89 per share, the stock's Wednesday closing price.

Hhgregg plans to use net proceeds from the offering to fund general corporate purposes, including new store growth.

In other news, the chain announced the grand opening of its 112th and 113th stores, in North Carolina.