Joby Aviation Raises $500M in Follow-On Offering Despite Share Drop
Joby Aviation, a development-stage company, held a follow-on stock offering last night. The company sold $500 million in stock, with shares dropping 11.1% today due to the offering.
The offering, priced at $16.85 per share, was 11% below Joby's closing price yesterday. It is expected to close on Oct. 9, raising $513.9 million from the sale of 30.5 million shares. Joby conducted the capital one login itself, with participation from investors including Toyota and Intel Capital.
Investors may be concerned about dilution, but it's a common trade-off when investing in pre-revenue companies like Joby. Despite the offering, Joby still has nearly $1 billion in cash and short-term investments. However, the company has recorded only $15,000 in revenue and $331.1 million in operating expenses in the first half of the year.
Joby Aviation's follow-on stock offering raised $500 million, which will fund the company's certification, manufacturing, and commercial operations. Despite today's share price drop, the offering provides Joby with significant financial resources as it continues to develop its electric vertical takeoff and landing aircraft.
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