Shares of Hagerty (HGTY), the specialty insurance and lifestyle brand for classic car enthusiasts, are soaring 12.64% in pre-market trading on Friday. This significant uptick comes on the heels of the company's announcement of an upsized secondary offering, suggesting robust investor interest in the stock.

Hagerty priced the secondary offering at $9.34 per share for 9.7 million Class A common shares, an increase from the initially planned offering size. The underwriters have also been granted a 30-day option to purchase up to an additional 1.46 million shares. It's important to note that the shares are being sold by Hagerty Holding and Aldel, with Hagerty itself not receiving any proceeds from the sale.

The market's positive reaction to this news likely stems from several factors. Firstly, the upsizing of the offering could be interpreted as a sign of strong demand for Hagerty's shares, particularly from institutional investors. Secondly, Hagerty Holding's plan to use its proceeds to redeem shares for the benefit of the estate of Kim Hagerty may be viewed as a strategic move that could potentially benefit the company's share structure. As the transaction is expected to close on Monday, investors appear to be positioning themselves ahead of this event, driving up the stock price in anticipation of potential positive outcomes.