Stock Markets January 26, 2026

Arbe Robotics Shares Drop Sharply After $16.1 Million Share Sale Is Priced

Perception radar specialist prices an underwritten offering at a steep discount; underwriters granted overallotment option

By Priya Menon ARBE
Arbe Robotics Shares Drop Sharply After $16.1 Million Share Sale Is Priced
ARBE

Arbe Robotics Ltd. saw its stock fall 17.4% on Monday after announcing an underwritten offering of 11.5 million ordinary shares priced at $1.40 each. The Israel-based perception radar company expects roughly $16.1 million in gross proceeds before fees, and has given underwriters a 30-day option to buy up to an additional 1.725 million shares at the same price. The company said net proceeds will be used for working capital and general corporate purposes.

Key Points

  • Arbe priced an underwritten offering of 11.5 million ordinary shares at $1.40 per share, expected to raise roughly $16.1 million in gross proceeds before fees.
  • Underwriters have a 30-day option to purchase up to an additional 1.725 million shares at the same price, increasing potential dilution.
  • Canaccord Genuity is the sole bookrunner; Roth Capital Partners and WestPark Capital are co-managers. The offering is expected to close around January 27, 2025, subject to customary conditions.

Arbe Robotics Ltd. (NASDAQ:ARBE) experienced a steep share decline on Monday after the perception radar specialist disclosed the pricing of an underwritten share offering.

The company priced 11.5 million ordinary shares at $1.40 apiece, which would generate about $16.1 million in gross proceeds before subtracting underwriting discounts, commissions and other transaction expenses. In connection with the deal, Arbe granted the underwriters a 30-day option to purchase up to an additional 1.725 million ordinary shares at the same $1.40 price.

Market reaction to the offering was negative, with Arbe’s stock sliding 17.4% on the day. Observers noted that the planned increase in outstanding shares, combined with the offering price set well below recent trading levels, appears to be driving the sell-off.

Arbe said it intends to apply the net proceeds from the sale toward working capital needs and general corporate purposes. No further specifics on the allocation of funds were provided in the announcement.

Canaccord Genuity is acting as the sole bookrunner on the transaction. Roth Capital Partners and WestPark Capital are named as co-managers. The company indicated the offering is expected to close around January 27, 2025, subject to customary closing conditions.

Arbe operates from Israel and trades on both the Nasdaq and the Tel Aviv Stock Exchange. The company develops perception radar solutions aimed at advanced driver assistance systems and autonomous vehicle applications.

Investors evaluating the situation should note the scale of potential dilution implicit in the offering and the option to sell an additional 1.725 million shares within 30 days. The announcement contained the company’s intended use of proceeds and deal logistics but did not provide more granular guidance on capital deployment or operational impacts.


Company snapshot: Israel-based provider of perception radar systems for ADAS and autonomous driving, listed on Nasdaq and TASE.

Risks

  • Shareholder dilution from the offering and the 30-day overallotment option, which may weigh on the stock price - impacts equity markets and investor sentiment in the automotive technology sector.
  • The offering price represents a significant discount to recent trading levels, a factor that appears to have contributed to a 17.4% one-day decline in the stock - impacts trading activity and market valuation of the company.
  • Uncertainty remains regarding the specific allocation of net proceeds beyond the stated use for working capital and general corporate purposes - impacts the company’s operating and financing outlook.

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