The company raised $86.9M in gross proceeds from the offering, triggering an 11% decline in its stock price.
Mayville Engineering Company priced a public offering of 4.348 million shares at $20 per share, raising approximately $86.9 million in gross proceeds. The underwriters secured a 30-day option to purchase up to 652,000 additional shares.
The offering follows a recent trading session where shares fell 11% on the announcement. Prior to this, the stock had not seen a similar equity raise in the past year, leaving investors cautious about dilution effects.
The immediate market reaction reflected investor concerns over potential shareholder dilution, driving the stock lower.