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 within the shares on Wall Street. Nikola’s underwriter, Citigroup, was only in a position to place a couple of third of the shares with its clients. An unnamed private investor has agreed to purchase the rest directly from Nikola, the truck maker said.
Nikola plans to make use of the cash raised for working capital and other general purposes. The corporate is preparing to launch a recent long-range electric semitruck powered by hydrogen fuel cells later this 12 months. The brand new truck will complement Nikola’s shorter-range Tre battery-electric heavy truck, which began shipping last 12 months.
Nikola had $233.4 million in money and equivalents available as of Dec. 31. The truck maker lost $222.1 million within the fourth quarter of 2022.
