After increasing the size of their secondary offering on Tuesday, Palm shares rose sharply netting $83.9 million. The follow on of shares offered released 4.63 million more shares than expected.

Palm resold 23.13 million shares. Initially anticipated offering only 18.5 million shares held by its investor Elevation Partners, Palm added more stock to the deal, which it priced at $6 a share. Elevation received $49 million from the offering, while Palm netted $83.9 million. Palm plans to use the proceeds for working capital, as well as for bolstering its resources for the launch of its highly anticipated Pre smartphone.

Palm shares rose as high as 9.5 percent to $6.59 in early morning trading. The spike in capital and the boost to the organisation will put Palm in a powerful place to take on competition through the mobile market. As commented on the CNET Report, a response states: “PALM is up 12% now. Pre is getting ready to open a can of whoop-ass on Apple.” As for Business, you need to spend money to make money: Palm now has a few dollars to play with. Let the games begin.

[via CNET]