Offerpad Solutions stock tumbles after $100M share offering plan

Published 29/08/2025, 15:16
© Reuters.

Investing.com -- Offerpad Solutions Inc (NYSE:OPAD) stock plunged 20% after the company announced plans to sell up to $100 million worth of Class A common shares in an at-the-market offering.

The real estate technology company disclosed the move in a regulatory filing, revealing it had entered into an Open Market Sale Agreement with Jefferies LLC on August 28, 2025. Under the agreement, Jefferies will act as the sales agent or principal for the offering, receiving a 3.0% commission on the gross sales price per share.

According to the filing, the shares will be sold through various methods permitted by law, including privately negotiated transactions, block trades, or as an "at the market offering" directly on the Nasdaq Stock Market or other existing trading markets for the company’s stock.

Offerpad plans to use the net proceeds from the share sale for "general corporate purposes, including working capital and capital expenditures," the company stated. The offering is being made under Offerpad’s existing shelf registration statement that was declared effective in April 2023.

The significant stock decline reflects investor concerns about potential dilution from the new share issuance, which could increase the company’s outstanding share count and reduce earnings per share. At-the-market offerings typically allow companies to raise capital gradually by selling shares into the market at prevailing prices rather than at a fixed price in a traditional offering.

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