Shares of Intuitive Machines (LUNR) experienced a sharp plunge of 13% in the after-hours trading session on Tuesday, following the company's announcement of plans to raise $65 million through a public stock offering and the sale of shares by an existing shareholder.
The Houston-based space exploration firm stated that it would sell $65 million worth of its Class A common stock, with underwriters given a 30-day option to purchase an additional $8.9 million and $877,500 worth of shares from the company and the selling stockholder, respectively. Additionally, Intuitive Machines entered into an agreement with South Korea's Boryung Corporation to sell $10 million worth of Class A shares in a concurrent private placement.
The news of the dilutive equity offering weighed heavily on investor sentiment, triggering a significant sell-off in Intuitive Machines' stock. Despite the company's strong performance in the third quarter, with revenue surging 360% year-over-year to $58.5 million driven by NASA contracts, the planned share issuance raised concerns about potential dilution of existing shareholders' stakes.
