Why Lilium Shares Are Nosediving
Portfolio Pulse from Henry Khederian
Lilium NV's shares have dropped by 17.65% after the company announced the pricing of an upsized $192 million offering. The underwritten public offering is for 57,692,308 shares at $1.30 per share. The underwriter, B. Riley Securities, has a 30-day option to purchase up to 8,653,846 additional shares to cover over-allotments. The net proceeds from the offering will be used for general corporate purposes.
July 14, 2023 | 2:57 pm
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Lilium NV's shares have dropped significantly following the announcement of a $192 million offering. This could indicate a lack of investor confidence in the company's current valuation.
The significant drop in Lilium NV's share price following the announcement of the offering suggests that investors may be concerned about the company's valuation. The offering price of $1.30 per share is lower than the current trading price, which could be causing the sell-off.
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IMPORTANCE 80
RELEVANCE 100