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Investing.com -- Symbotic Inc. (NASDAQ:SYM) stock fell 11% in after-hours trading on Wednesday following the company’s announcement of a public offering of its Class A common stock.
The AI-enabled robotics technology company revealed plans to offer 10 million shares, with 6.5 million shares coming directly from the company and 3.5 million shares from SVF Sponsor III (DE) LLC, an affiliate of SoftBank Group Corp. Additionally, Symbotic intends to grant underwriters a 30-day option to purchase up to 1.5 million additional shares.
According to the announcement, Symbotic plans to use the net proceeds from its portion of the offering for general corporate purposes. The selling securityholder, SVF Sponsor III, will receive all net proceeds from the sale of its shares.
The offering represents a significant dilution of existing shares, which appears to be driving the negative market reaction.
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