Why Sable Offshore (SOC) Stock Is Getting Hammered
Portfolio Pulse from Henry Khederian
Sable Offshore Corp (NYSE:SOC) shares dropped by 21.3% to $22.26 after announcing a $150 million private placement of 7.50 million shares. The funds will be used for capital expenditures and general corporate purposes. The placement is expected to close on September 23, with TD Cowen, Jefferies, and Intrepid Partners handling the process.
September 20, 2024 | 7:22 pm
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Sable Offshore Corp's stock fell 21.3% following the announcement of a $150 million private placement of 7.50 million shares. The funds are intended for capital expenditures and general corporate purposes.
The significant drop in SOC's stock price is directly linked to the announcement of a large private placement, which often dilutes existing shares and can lead to a decrease in stock value. The market's reaction suggests concerns over dilution and the company's need for additional capital.
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