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PITTSBURGH - Aurora Innovation Inc. (NASDAQ:AUR), a company specializing in self-driving technology, has announced an upsized public offering of 116,666,667 shares of its Class A common stock at a price of $3.60 per share. The transaction is expected to generate gross proceeds of approximately $420 million, before accounting for underwriting discounts and commissions and estimated offering expenses.
The offering is scheduled to close on August 2, 2024, with the condition that all customary closing requirements are met. Additionally, Aurora has provided underwriters a 30-day option to purchase up to an additional 17,500,000 shares at the public offering price, less underwriting discounts and commissions.
Leading the underwriting for the offering are Goldman Sachs & Co. LLC, Allen & Company LLC, and Morgan Stanley, with Evercore ISI, Canaccord Genuity, TD Cowen, and Wolfe | Nomura Alliance serving as book-runners.
The offering is based on a Registration Statement on Form S-3, which the U.S. Securities and Exchange Commission (SEC) declared effective. Aurora has filed a preliminary prospectus supplement and accompanying prospectus detailing the terms of the offering, with a final prospectus supplement and accompanying prospectus to be filed with the SEC.
Aurora, known for the Aurora Driver, a self-driving system designed to operate a variety of vehicle types, aims to enhance the safety, accessibility, reliability, and efficiency of transportation. The system is integral to the company's driver-as-a-service products for both trucking and ride-hailing sectors.
The press release contains forward-looking statements regarding the offering's timing and size, as well as the company's ability to raise capital through the sale of Class A common stock. These statements are subject to risks and uncertainties, including the completion of the proposed offering and the satisfaction of closing conditions. The risks are further described in the Risk Factors section of the preliminary prospectus supplement filed with the SEC and other documents.
This news is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy the securities in any jurisdiction where such an offer or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.
In other recent news, Aurora Innovation has announced its financial results for the quarter ending June 30, 2024, through an 8-K filing with the Securities and Exchange Commission. The company has also canceled its second quarter business review conference call due to the initiation of a public offering of its Class A common stock.
This move is aimed at raising up to $350 million, with a provision for underwriters to purchase an additional 15% of the shares sold during a 30-day period. However, the completion, size, and terms of the offering are contingent on market conditions and other factors.
The company also highlighted that the public offering is subject to various risks and uncertainties, as detailed in its filings with the SEC. These developments are recent and are subject to change. The company has stressed that there are no guarantees that the offering will be completed on the anticipated terms, or at all. This information is based on the statements found in the press release issued by Aurora Innovation, Inc. and does not include any additional analysis or commentary.
InvestingPro Insights
Aurora Innovation Inc. (NASDAQ:AUR) is navigating a challenging financial landscape as it prepares for its public offering. According to InvestingPro data, the company holds a market capitalization of approximately $6.21 billion, reflecting the scale of its operations within the self-driving technology sector. Despite this, the company's financial metrics reveal some underlying concerns.
Notably, the company's P/E ratio stands at a negative -4.9, indicating that it is not currently profitable. This aligns with an InvestingPro Tip that analysts do not anticipate the company will be profitable this year. Moreover, the company's gross profit over the last twelve months as of Q1 2024 is reported at a negative $705 million, emphasizing the cost challenges it faces.
However, there are positive signs in the company's liquidity and recent stock performance. Aurora Innovation boasts a strong cash position, holding more cash than debt, which is a reassuring sign for investors considering the offering. This is complemented by another InvestingPro Tip highlighting that the company's liquid assets exceed its short-term obligations, suggesting a degree of financial stability in the near term.
Moreover, the company's stock price has shown significant resilience, with a 42.35% return over the last month and a 39.62% return over the last three months, which may attract investors looking for growth potential in the stock market.
For those interested in a deeper dive into Aurora's financial health and stock performance, the InvestingPro platform offers a comprehensive set of additional tips. There are currently 11 more InvestingPro Tips available for Aurora Innovation Inc., which can be accessed at https://www.investing.com/pro/AUR, providing valuable insights for investors and analysts alike.
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