Canada's Sino-Forest Corp said on Friday it increased its bought-deal offering size by C$38.5 million to $330 million by selling more shares to the underwriters.

On Thursday, the company had said it would raise $291.5 million through a bought-deal sale at C$11 per share to fund the acquisition of commercial plantation forests in China.

The company said it agreed with Credit Suisse Securities (Canada) Inc and Dundee Securities Corp to include a syndicate of underwriters to be determined, who will buy the additional 3.5 million shares.

The underwriters will have an over-allotment option to buy up to 15 percent of the number of shares sold, at the same price, Sino-Forest, which owns and operates significant plantations in China, said.

The underwriters have now agreed to purchase a total of about 30 million common shares, it said.

The company's shares were down 12 percent at C$11.33 in morning trade on the Toronto Stock Exchange.

(Reporting by Isheeta Sanghi in Bangalore; Editing by Gopakumar Warrier)