- Nikola on Thursday announced plans for a $100 million secondary stock offering.
- The offer was priced 20% off Thursday’s close, sending shares of the truckmaker lower on Friday morning.
Nikola Motor Company
Source: Nikola Motor Company
Electric heavy-duty truck maker Nikola said its planned $100 million secondary share offering, announced Thursday after US markets closed, is priced at $1.12 a share, 20% below closing price of the stock of $1.40.
Shares fell more than 15% on Friday morning, hitting a new 52-week low.
Even at the discount, there appears to be very limited interest in Wall Street stocks. Nikola’s underwriter, Citigroup, was only able to place about a third of the shares with its clients. An anonymous private investor has agreed to buy the remainder directly from Nikola, the truckmaker 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 semi-truck powered by hydrogen fuel cells later this year. The new truck will complement Nikola’s shorter-range Tre battery-electric heavy-duty truck, which began shipping last year.
Nikola had $233.4 million in cash and cash equivalents on hand as of December 31. The truckmaker lost $222.1 million in the fourth quarter of 2022.