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Tesla carrying out share issue
Posted on Thursday, 13 February 2020 15:50
Nasdaq-listed electric vehicle and clean energy company Tesla is planning a public offering of stock in a bid to raise around USD 2.00 billion.
Based on the firm’s closing price of USD 767.29 on 12th February, the last trading day prior to the announcement, it can be calculated that the company will issue almost 2.62 million shares as part of the deal.
The new stock would equate to a 1.4 per cent share of Tesla’s enlarged share capital upon closing.
Proceeds of the capital increase have been earmarked for strengthening the group’s balance sheet and for general corporate purposes.
At present, it is not clear when completion could be expected to take place.
In addition to the USD 2.00 billion-worth of stock being issued via the public offering, Tesla has granted the underwriters a 30-day option to buy additional shares of up to around USD 300.00 million.
Investors in the capital increase include Tesla chief executive Elon Musk, who will buy as much as USD 10.00 million-worth of stock, while board member Larry Ellison will pick up no more than USD 1.00 million-worth.
Tesla was established in 2003 and as well as electric vehicles, it makes scalable clean energy generation and storage products.
It launched its first vehicle, the Roadster, in 2008, and last year sold 367,500 cars, more than the previous two years’ figures combined.
The firm’s portfolio of vehicles includes the Model S and Model X models, all of which are produced at its factory in Fremont, while it also makes energy solutions for homeowners, businesses and utilities, such as its Powerwall, Powerpack and Solar Roof products.
There were 40 capital increases announced worldwide by automobile manufacturers during 2019, according to Zephyr, the M&A database published by Bureau van Dijk.
Of these, the most valuable was worth USD 1.84 billion and also involved Tesla as the company completed an issue of convertible senior notes back in May.
© Zephus Ltd