Shares of Aurora Innovation Inc. AUR, +1.58% experienced a significant downturn of 9.9% after hours on Tuesday. The company, renowned for its cutting-edge self-driving vehicle technology, made an announcement regarding its plan to initiate a proposed public share offering valued at up to $200 million. Simultaneously, Aurora has reached an agreement to conduct a $600 million private sale to selected investors.
Public Share Offering
Aurora intends to grant the underwriters a 30-day option to acquire an additional 15% of the shares designated for public offering. This option provides flexibility to adapt to potential market demands during the offering period.
Private Placement Agreement
In addition to the public share offering, Aurora Innovation Inc. has entered into a private-placement agreement. This agreement involves existing institutional and strategic investors, entities affiliated with two of Aurora’s directors, as well as new institutional investors. Around $600 million worth of Aurora’s shares will be sold through this agreement, at a price below the public-offering price.
It is worth noting that share offerings have the potential to increase the supply of shares available in the market, often leading to a decrease in their price.
Stay tuned for further updates on this development by Aurora Innovation Inc.