Shares of Intuitive Machines retreated in postmarket trading after the company said it plans to sell shares of its common stock.
The stock fell 12.6% to $12.37 in late trading on Tuesday after ending the market session down 2.8% at $14.15. The shares have registered a five-fold increase in price this year.
The sale comes after Intuitive's stock reached a 52-week high of $17.14 on Nov. 29.
The Houston-based space exploration, infrastructure and services company initially said it will sell $65 million of its Class A common stock. Intuitive and a selling stockholder will give underwriters a 30-day option to purchase about $8.9 million and $877,500, respectively, of their Class A shares.
Intuitive also said that on Monday it entered into an private placement agreement with the Boryung Corporation to sell it $10 million of Class A shares at the public offering price.
Then, the company announced the pricing of an upsized offering of 9,523,810 shares of its Class A common stock at a price to the public of $10.50 per share. As part of the Offering, the Company and a selling stockholder granted the underwriters a 30-day option to purchase up to an additional 1,275,714 and 152,857 shares of Class A Common Stock from the Company and such selling stockholder, respectively. The Offering is expected to close on December 5, 2024.
Additionally, the Company will issue 952,381 shares of Class A Common Stock to Boryung Corporation, an accredited investor, at the Public Offering Price pursuant to an agreement entered into with Boryung on December 2, 2024 in a concurrent private placement.
The net proceeds to the Company from the Offering and the Private Placement are expected to be approximately $104.25 million, after deducting underwriting discounts and commissions, but before estimated offering expenses payable by the Company, excluding any exercise of the underwriters’ opinion to purchase additional shares.