Goldman Sachs expects Nvidia ’beat and raise,’ lifts price target to $240
Investing.com -- Cleveland-Cliffs Inc. (NYSE:CLF) stock fell 9% Thursday after the steelmaker announced the pricing of a public offering of 75 million common shares expected to raise $964 million in gross proceeds.
The company’s shares dropped to $12.73 in premarket trading, down from Wednesday’s close of $14.09, as investors reacted to the potential dilution from the significant share issuance.
Cleveland-Cliffs priced the offering at approximately $12.85 per share and granted the underwriter, UBS Securities LLC, a 30-day option to purchase up to an additional 11.25 million shares. The offering is expected to close on October 31, 2025.
The steel producer intends to use the proceeds primarily to repay borrowings under its asset-based credit facility, with any remaining funds allocated for general corporate purposes. UBS Securities is serving as the sole underwriter for the offering.
The share offering represents a substantial increase to Cleveland-Cliffs’ outstanding share count, which explains the negative market reaction as existing shareholders face dilution of their ownership stakes. The company did not specify how much debt it plans to pay down with the proceeds.
Cleveland-Cliffs is one of North America’s largest flat-rolled steel producers and a major supplier of iron ore pellets to the North American steel industry.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.