Ivanhoe Electric Stock Slips After Pricing Equity Offering At 12% Discount
Portfolio Pulse from Shivani Kumaresan
Ivanhoe Electric Inc (NYSE:IE) has priced an underwritten public offering of 11.9 million shares at $13.50 per share, a 12.3% discount to the company’s closing price as of Sept. 13, 2023. The company has also granted the underwriters a 30-day option to purchase up to an additional 1.8 million shares at the public offering price. The gross proceeds from the offering are expected to be approximately $160 million. The company intends to use the net proceeds for a feasibility study on the Santa Cruz Project, mineral rights payments, drilling and other exploration activities, and general corporate purposes.
September 14, 2023 | 9:57 am
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Ivanhoe Electric's stock price is likely to be negatively impacted in the short term due to the discounted pricing of the public offering.
The company's decision to price its public offering at a discount to its current share price is likely to put downward pressure on the stock in the short term. This is reflected in the premarket trading where the stock is down by 12.22%. However, the impact may be mitigated in the longer term if the funds raised are used effectively for the stated corporate purposes.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100