- Nikola on Thursday announced plans for a $100 million secondary stock offering.
- The offering priced at a 20% discount to Thursday's close, pushing the truck maker's shares lower on Friday morning.
Electric heavy-truck maker Nikola said that its planned $100 million secondary stock offering, announced on Thursday after U.S. markets closed, has priced at $1.12 per share – 20% below the stock's Thursday closing price of $1.40.
Nikola's shares closed on Friday at $1.21, down over 13%.
Even with the discount, there appears to have been very limited interest in the shares on Wall Street. Nikola's underwriter, Citigroup, was only able to place about a third of the shares with its clients. An unnamed private investor has agreed to buy the remainder directly from Nikola, the truck maker said.
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Nikola plans to use the money raised for working capital and other general purposes. The company is preparing to launch a new long-range electric semitruck powered by hydrogen fuel cells later this year. The new truck will complement Nikola's shorter-range Tre battery-electric heavy truck, which began shipping last year.
Nikola had $233.4 million in cash and equivalents available as of Dec. 31. The truck maker lost $222.1 million in the fourth quarter of 2022.
