Shares of Intuitive Machines (LUNR, Financia) plunged 9% following the revelation that a public offering increased to $10.50 per share. The company was trading at $14.15 on Tuesday, but its shares were $11.61 in the pre-market. The offering comprised 9.52 million of Class A common stock, and underwriters may purchase additional shares from the company, thus making the dilution even worse.
Also, the company is placing the issue of 952,381 shares with Boryung Corporation at the public offering price. Gross with underwriting from the IPO and the private placement is anticipated to be $104.25 million, with the net proceeds deducted for the underwriting discount and before other expenses. These funds are to be utilized by Intuitive Machines to exchange the same series standard unit in Intuitive Machines OpCo.
This financing round has been managed jointly by BofA Securities, Cantor, Barclays, and Stifel, alongside the secondary managers. Depending on standard terms and conditions, the offering is due to stop on December 5.
The watering down and the very low price of the offering have been exercising investors, which has resulted in the steep drop in prices. These funds critically aim to enhance Intuitive Machines' operational agility due to the capital-intensive Space Exploitation Services Industry. However, the substantial decline points to market awareness of share dilution and, in the specific case, of high-growth but risky shares
