UPDATE 1-Heelys shareholders to sell 8 million shares
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May 7 (Reuters) - Heelys Inc. (HLYS.O), which makes a popular brand of shoes that double as roller-skates, said it filed for the sale of nearly a third of its common shares held by stockholders, including a stake by its largest shareholder.
Shares of the Carrollton, Texas-based company were down 13 percent to $31.60 in late electronic trade, after closing at $36.34 on the Nasdaq.
Earlier in the day, the company posted first-quarter earnings of 30 cents a share, ahead of analysts' expectations of 20 cents.
In a filing with the U.S. Securities and Exchange Commission, the company said shareholder Capital Southwest Venture Corp., a unit of Capital Southwest Corp. (CSWC.O), plans to sell over half its 34 percent holding.
The sale of 5.2 million shares will reduce Capital's stake to about 15 percent or 4.1 million shares. Other executives and board members also plan to sell a combined 2.8 million shares of their holding, Heelys said in the filing.
Underwriters are given an option to purchase another 1.2 million shares to cover over-allotments, the company added. (Reporting by Supantha Mukherjee and Amitha Rajan in Bangalore)
