Enovix tumbles on $300 mln convertible bonds sale

Enovix

11/09/2025 12:33

** Shares of battery maker Enovix ENVX.O down 14.2% premarket to $7.85, lowest since late Jun, after capital raise

** Fremont, California-based Enovix announces pricing private offering of $300 mln 4.75% 5-yr convertible bonds

** Co plans to use net offering proceeds for general purposes, including to fund potential acquisitions

** Initial conversion price set at $11.21, 22.5% above stock's last sale on Weds

** It also expects to use ~$37.7 mln of net proceeds to pay the cost of four separate capped call transactions to help mitigate dilution

** Co has $1.8 bln market cap

** ENVX shares on Weds closed up 0.9% at $9.15, leaving them down ~16% YTD

** 9 of 12 analysts covering the stock rate it "strong buy" or "buy" and 3 rate "hold"; median PT is $23.50, LSEG data shows

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))