Harbin Electric exercises over-allotment option

Harbin Electric Inc. said Monday it closed the sale of an over-allotment option for its public offering, which closed earlier this month.

The Chinese maker of electric motors said it closed the sale of an additional 937,500 shares of common stock at the public offering price of $16.

The exercise of the over-allotment option means Harbin sold 7.2 million shares in its public offering, with total gross proceeds of $115 million, of which the company will net about $107.5 million.

The company said it used part of the net proceeds to repay certain debt. It will use the rest to pay for product development, working capital and corporate purposes, including for potential acquisitions.

Roth Capital Partners, LLC acted as offering's underwriter.

Harbin shares fell $1.49, or 9 percent, to $15.04 in afternoon trading.