Electric truck manufacturer Nikola (NKLA) recently said that its planned $100 million secondary stock offering has priced at $1.12 per share, a sizable 20 percent below the stock’s closing price of $1.40. As a result of this, Nikola (NKLA) shares fell over 15 percent, hitting a new 52-week low as reported by outlets like CNBC.
Even with shares being at their lowest point in 52 weeks, there’s been little uptick in interest from investors. According to CNBC, Nikola’s underwriter, Citigroup, could only place around a third of these shares with clients. Softening the blow, an unnamed private investor agreed to purchase the remainder directly from Nikola, as shared by Nikola itself.
Today’s rough patch of news for Nikola comes after the company lost $222.1 million in the fourth quarter of 2022, ending the year on December 31 with $233.4 million in cash and equivalents. Moving forward, Nikola plans to release a new long-range electric semi truck that uses hydrogen fuel cells as power sometime later this year. The new truck will join Nikola’s existing shorter-range battery-electric heavy truck which started shipping out last year.
For more on Nikola’s stock market woes, be sure to read through the full reporting from outlets like CNBC. And for more stock market news, check out some of our previous coverage, including GameStop (GME) reporting 76 million directly registered shares (DRS) as of March 22, 2023, and how Chinese Ecommerce giant Alibaba split into 6 units each with potential IPOs.