Investors react to dilution concerns as FuelCell Energy prices 10.7 million shares at $21, below its prior close of $25.96.
FuelCell Energy (NASDAQ:FCEL) shares fell 15% to $22.04 after pricing an upsized $225 million stock offering. The company sold 10.7 million shares at $21 each, a discount to its previous closing price of $25.96, raising dilution concerns among investors.
The offering was expanded from an initially planned $200 million and includes a 30-day option for underwriters to purchase an additional 1.6 million shares. Proceeds will fund manufacturing expansion and general corporate needs.
The stock’s decline reflects investor unease over the share sale’s impact on earnings per share and ownership dilution.