Aspen Aerogels, Inc. (NYSE: ASPN), a technology leader in sustainability and electrification solutions, experienced a significant after-hours plunge of -6.59% on October 21, 2024, following the company's announcement of a public offering of 4.25 million shares of its common stock.
The company revealed its plans to raise capital through the public offering, with the net proceeds intended for working capital, capital expenditures, and general corporate purposes. However, the dilution of existing shareholdings resulting from the increased number of outstanding shares is expected to put downward pressure on the company's stock price.
Aspen Aerogels also granted the underwriters of the offering, Goldman Sachs & Co. LLC and Morgan Stanley, a 30-day option to purchase an additional 637,500 shares of common stock. The stock plunged shortly after the announcement was made around 12:54 PM ET on October 21, 2024, reflecting the market's reaction to the potential dilution of existing shareholders' stakes.
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