AST SpaceMobile, Announced Launch of Offering of $100,000,000 of Class A Common Stock
Portfolio Pulse from Charles Gross
AST SpaceMobile, Inc. (NASDAQ:ASTS) has announced a public offering of $100,000,000 of its Class A common stock. The company will also provide a 30-day option for the underwriter to purchase an additional $15,000,000 of shares. The net proceeds will be used for general corporate purposes. UBS Investment Bank and Barclays are the joint book-running managers, with Deutsche Bank Securities, B. Riley Securities, and Scotiabank also serving as joint book-runners.
January 18, 2024 | 9:41 pm
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AST SpaceMobile is offering $100M of Class A common stock, potentially diluting current shareholders but providing capital for corporate purposes.
The announcement of a new stock offering can lead to dilution of existing shares, which often results in a short-term negative impact on the stock price. However, the capital raised can be beneficial for the company's long-term growth.
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