Joby Aviation Raises Over $1.18 Billion in Upsized Offerings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Benzinga
- Expanded Financing: Joby Aviation's concurrent offerings raised over $1.18 billion, reflecting urgent financing needs amid skepticism regarding its long-term profitability, as highlighted by market reactions.
- Convertible Notes Details: The offering includes $600 million in 0.75% convertible senior notes due in 2032, with a conversion price of approximately $14.19 per share, representing a 25% premium over the public offering price, aimed at attracting investors.
- Clear Use of Proceeds: Joby plans to allocate approximately $55 million to cover capped call transaction costs, while the remaining capital will fund FAA certification efforts, scale manufacturing capabilities, and prepare for commercial passenger service launch, indicating strategic foresight.
- Market Reaction: Despite Cathie Wood's continued investment through ARK Invest, JPMorgan Chase has flagged Joby as a top short idea, reflecting a divide in market sentiment that led to a 9.72% drop in premarket trading, highlighting investor concerns about its future outlook.
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Analyst Views on JOBY
Wall Street analysts forecast JOBY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for JOBY is 15.67 USD with a low forecast of 8.00 USD and a high forecast of 22.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
1 Buy
3 Hold
2 Sell
Hold
Current: 13.470
Low
8.00
Averages
15.67
High
22.00
Current: 13.470
Low
8.00
Averages
15.67
High
22.00
About JOBY
Joby Aviation, Inc. is a transportation company developing an all-electric, vertical take-off and landing air taxi. The Company is engaged in designing and testing a piloted all-electric, vertical take-off and landing (eVTOL) aircraft. The Joby eVTOL is designed to transport a pilot and up to four passengers or an expected payload of up to 1,000 pounds at speeds of up to 200 miles per hour (mph). The aircraft is optimized for urban routes, with a target range of up to 100 miles on a single charge. The Company plans to manufacture, own and operate its aircraft itself, building a vertically integrated transportation company that delivers transportation services to customers, including government agencies such as the United States Air Force (USAF) through sales or contracted operations, and to individual end-users through a convenient app-based aerial ridesharing service. It also offers a network of terminals and loyal flyers in markets like New York and in Southern Europe.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Joby Aviation Upsizes Stock and Convertible Notes Offerings
- Increased Financing Size: Joby Aviation announced an upsized offering of $600 million in 0.75% convertible senior notes due 2032, indicating a proactive approach to future financing needs amid market conditions.
- Stock Offering Details: The company plans to sell approximately 52.9 million shares at $11.35 each, expecting to net about $576 million, potentially rising to $662.4 million if underwriters exercise their option, thereby strengthening its capital base.
- Planned Use of Funds: About $55 million of the note proceeds will be allocated for capped call transactions, while the remaining funds will support certification, manufacturing, and general corporate purposes, reflecting a strategic focus on future growth.
- Market Reaction: Despite the seemingly positive financing plan, Joby’s shares fell 11.22% in premarket trading, highlighting market concerns regarding the company's future profitability and cash burn risks.
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