S&P 500 slips, but losses kept in check as Nvidia climbs ahead of results
Investing.com -- MP Materials Corp. (NYSE:MP) stock declined 6% in after-hours trading Wednesday following the company’s announcement of a proposed $500 million public offering of common stock.
The rare earth materials producer plans to sell newly issued shares, with underwriters receiving an option to purchase up to an additional 15% of shares to cover over-allotments. J.P. Morgan Securities LLC and Goldman Sachs & Co (NYSE:GS). LLC are serving as lead joint book-running managers for the offering, with Morgan Stanley & Co (NYSE:MS). LLC also acting as a book-running manager.
MP Materials indicated it intends to use proceeds from the stock sale to fund acceleration and expansion of its operations, including its 10X Facility, as well as for strategic growth opportunities and general corporate purposes.
The offering comes amid significant recent share price appreciation, with MP Materials stock having surged approximately 95% over the past five trading days. This rally followed the company’s announcement of deals with Apple (NASDAQ:AAPL) and the United States Department of Defense.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.