Insurance Auto Auctions Stock Offering Planned

Insurance Auto Auctions Inc., a North Hollywood operator of vehicle auctions for the insurance industry, said it plans a secondary stock offering of 2.1 million common shares.

The company itself plans to offer 1.05 million shares, while several Insurance Auto Auctions stockholders are offering an additional 1.05 million shares.

In a filing with the Securities and Exchange Commission, Insurance Auto Auctions estimated that the net proceeds of the offering to the company would be $16.2 million based on a recent, $16.75-a-share trading price for its stock.

Insurance Auto Auctions said it plans to use the cash for acquisitions and general corporate purposes, although it is not yet in agreement for any specific purchase.