AXT Inc's stock surged 5.06% during intraday trading on Friday, marking a significant upward movement for the semiconductor materials company.

The price increase appears to be driven by news that the underwriters of AXT's recent public offering have exercised their over-allotment option for 1,284,046 additional shares at $64.25 per share. This move raised approximately $82.5 million in gross proceeds before fees, demonstrating strong demand for the offering.

According to the company's announcement, the net proceeds from this offering are primarily earmarked to support capacity expansion for indium phosphide substrates at Beijing Tongmei Xtal, AXT's subsidiary. This capital injection for growth initiatives likely contributed to positive investor sentiment toward the stock.