The company intends to use proceeds from its stock offer to repay a portion of the $300 million bridge loan it used to finance its acquisition of Oil & Gas Rental Services Inc. Proceeds will also fund general corporate activities.
RBC Capital Markets is lead underwriter and has an option to buy an additional 675,000 shares to cover over-allotments.
As of Nov. 1, the company had 24.8 million shares outstanding.
The company said it also plans to use proceeds from the senior notes, due in 2017, to pay off debt from the Oil & Gas Rental Services acquisition.
Shares of Allis-Chalmers fell $2.74, or 11.9 percent, to $20.30 in midday trading on the American Stock Exchange.
