Intuitive Machines Stock Falls 18% After Upsized Offering

On Wednesday, shares of Intuitive Machines, Inc. (NASDAQ:LUNR, LUNRW) experienced an 18% decline in value following the announcement of an upsized public offering. The company's stock closed at $14.15 on Tuesday but was trading at $11.61 on Wednesday morning.

The space exploration and services company disclosed the pricing of its upsized offering at $10.50 per share for 9,523,810 shares of its Class A common stock. The offering also includes a 30-day option for underwriters to purchase additional shares from the company and a selling stockholder, which could potentially increase the total number of shares sold.

In a concurrent private placement, Intuitive Machines will issue 952,381 shares of Class A common stock to Boryung Corporation, an accredited investor, at the public offering price. This private sale is dependent on the completion of the public offering and other standard closing conditions.

The anticipated net proceeds from both the public offering and the private placement are estimated to be around $104.25 million, after accounting for underwriting discounts and commissions but before other offering expenses. Intuitive Machines plans to use these funds, along with its current cash and investments, to purchase an equivalent number of common units from its operational entity, Intuitive Machines OpCo.

The offering is expected to close on December 5, 2024, provided all customary closing conditions are met. BofA Securities, Cantor, Barclays (LON:BARC ), and Stifel are leading the offering as joint book-running managers, with additional management by Roth Capital Partners (WA:CPAP ), B. Riley Securities, and co-management by The Benchmark Company.

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Source: Investing.com