Joby Aviation dives after $1.2 bln stock, convertible bonds sales
29/01/2026 15:06
Updates to market open
** Electric air taxi maker Joby Aviation's JOBY.N shares down 15.5% to $11.30, over six-month low, after $1.2 bln capital raise
** JOBY shares tracking steepest daily pct drop since Jul 2023
** Santa Cruz, California-based JOBY announced pricing public offerings of $600 mln 0.75% convertible bonds (CBs) due 2032 and ~52.9 mln shares at $11.35 for $600 mln gross proceeds
** Combined deal size of the concurrent offerings increased from $1 bln
** Equity offering price represents 15.1% discount to stock's last close
** Initial conversion price on the CBs set at $14.19, 25% above the equity offering price
** Morgan Stanley borrowed ~5.3 mln shares from third parties to facilitate delta hedging transactions by some CBs investors
** Co intends to use net proceeds from the offerings to fund certification and manufacturing efforts, prepare for commercial operations and for general purposes, and fund cost of capped call transactions
** Morgan Stanley, Allen & Co and BofA joint bookrunners for equity offering; Goldman Sachs joins the trio as a joint bookrunner for the CBs offering
** JOBY has ~911.8 mln shares outstanding
** Through Weds close, shares had gained 60% over the past year
** Avg rating among 11 analysts is "hold"; median PT $12.50, per LSEG data
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))