My Blog
Business

Nikola NKLA stock sale priced below market


Nikola Motor Company

Source: Nikola Motor Company

Electric heavy-truck maker Nikola said that its planned $100 million secondary stock offering, announced on Thursday after U.S. markets closed, has priced at $1.12 per share – 20% below the stock’s Thursday closing price of $1.40.

Nikola’s shares closed on Friday at $1.21, down over 13%.

Even with the discount, there appears to have been very limited interest in the shares on Wall Street. Nikola’s underwriter, Citigroup, was only able to place about a third of the shares with its clients. An unnamed private investor has agreed to buy the remainder directly from Nikola, the truck maker said.

Nikola plans to use the money raised for working capital and other general purposes. The company is preparing to launch a new long-range electric semitruck powered by hydrogen fuel cells later this year. The new truck will complement Nikola’s shorter-range Tre battery-electric heavy truck, which began shipping last year.

Nikola had $233.4 million in cash and equivalents available as of Dec. 31. The truck maker lost $222.1 million in the fourth quarter of 2022.

Related posts

Scientist behind IBM Watson raised $60 million for Elemental Cognition

newsconquest

The 15 worst puts to possess a house if you need it to extend in worth

newsconquest

Goldman Sachs top 2023 picks include Chipotle & Amazon

newsconquest

Leave a Comment