Intuitive Machines Stock Plummets 18% After Increased IPO

On Wednesday, Intuitive Machines, Inc. (NASDAQ:LUNR, LUNRW) shares fell 18% following the announcement of an enlarged public offering. The company's stock closed at $14.15 on Tuesday and was trading at $11.61 on Wednesday morning.

The space exploration and services company announced the enlarged public offering of 9,523,810 shares of its Class A common stock at a price of $10.50 per share. The offering also includes an option for underwriters to purchase additional shares from the company and a selling shareholder within 30 days, which could potentially increase the total number of shares sold.

In a concurrent private placement, Intuitive Machines will issue 952,381 shares of Class A common stock at the offering price to accredited investor Boryung Corporation. This private placement is contingent upon the completion of the public offering and other customary closing conditions.

The net proceeds expected from both the public offering and private placement are estimated to be approximately $104.25 million, before other offering expenses but after underwriting discounts and commissions. Intuitive Machines plans to use these funds, along with its existing cash and investments, to purchase an equivalent number of common units from its operational entity, Intuitive Machines OpCo.

The offering is expected to close on December 5, 2024, provided that all customary closing conditions are met. BofA Securities, Cantor, Barclays, and Stifel are managing the offering as joint book-running managers, while Roth Capital Partners, B. Riley Securities provide co-management along with The Benchmark Company.