nLIGHT Stock Drops After Pricing $175M Public Offering

Key Announcement Summary

Shares of nLIGHT Inc. (NASDAQ:LASR) experienced a 4% decline in premarket trading following the announcement of its underwritten public offering. The high-power laser provider priced the offering to raise approximately $175 million in gross proceeds.

Offering Overview

The company has priced 3,977,273 shares of its common stock at $44.00 per share. nLIGHT has also granted the underwriters a 30-day option to purchase up to an additional 596,590 shares. The proceeds are intended for working capital, capital expenditures, and general corporate purposes.

Market and Stock Impact

The decline in nLIGHT's stock price is a typical market reaction to a share offering. The issuance of new shares increases the total number of outstanding shares, which can dilute the value of existing holdings. The offering is managed by a syndicate of investment banks, including Stifel and Baird as joint lead book-running managers.

Conclusion

The offering is expected to close on or about February 5, 2024, subject to customary closing conditions. This capital raise will provide nLIGHT with additional funds to support its operational and growth initiatives in the directed energy, optical sensing, and advanced manufacturing sectors.

FAQ

Q: Why did nLIGHT's stock price fall?
A: The stock price fell because the company announced a public share offering, which increases the number of outstanding shares and dilutes the ownership percentage of existing shareholders.

Q: How much does nLIGHT aim to raise from this offering?
A: nLIGHT aims to raise approximately $175 million in gross proceeds, before deducting underwriting discounts and other expenses.

Source: Investing.com