CB Richard Ellis’s shares jumped 43% yesterday after the company raised $180m(£121m) in a sale of shares.
The company's shares rose $1.62 to $5.39 after it sold 50m shares at $3.77 each. More than a fifth of the shares were bought by Blum Capital Partners, a long-time major backer of the company, which increases its shareholding to 15%.
Last Saturday CBRE abandoned plans to raise $300m - $400m (£202m - £269m) through the private sale of convertible preferred stock.
‘The stock could be volatile for a while because of the uncertainty in their base operating business,’ JPM Securities analyst Will Marks said.
'The shares rose Thursday probably because the prospect of new capital ensured that the company would meet debt covenants, he added.