What happened Shares of Phreesia (NYSE: PHR) were flying 11.2% higher as of 11:11 a.m. EDT on Wednesday. The big jump came after the company said that it will price the previously announced public offering of 5 million shares at $32 per share. So what It's common for a company's share price to fall when the pricing of a secondary offering is announced. And Phreesia's share price did open lower yesterday after the company announced after the market close on Monday that it planned a secondary stock offering. But the healthcare stock quickly bounced back on Tuesday and is enjoying even stronger momentum today. Why? Image source: Getty Images. For one thing, Phreesia priced its offering at only a little under its Tuesday closing price of $32.52 and even closer to its Monday closing price of $32.32. The offering price of $32 is quite high considering that selling 5 million shares will dilute the value of existing shares by around 13%. Most important, though, is what this strong secondary offering price represents: investors' confidence in Phreesia's business prospects. The company operates the leading patient intake management platform. Its revenue jumped 14% year over year in the second quarter despite the headwinds from the COVID-19 pandemic. The net proceeds of around $151.6 million generated from the stock offering will enable Phreesia to expand its business further. Now what Phreesia could sell even more shares. The company granted the underwriters of its secondary stock offering an option to buy up to 750,000 additional shares. This option must be exercised within 30 days of the close of the offering, which is expected to happen on Oct. 23, 2020. If this option is exercised in full, it will net Phreesia another $22.8 million. 10 stocks we like better than Phreesia, Inc.When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Phreesia, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of September 24, 2020 Keith Speights has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Phreesia, Inc. The Motley Fool has a disclosure policy.Source