Shares of FuelCell Energy (NASDAQ:FCEL) declined 12.6% in after-hours trading Tuesday after the company disclosed an underwritten public offering of $200 million in common stock.
The company said all shares in the planned offering are being sold by FuelCell Energy itself. The underwriting agreement includes a 30-day option for the underwriters to purchase up to an additional 15% of the offered shares at the public offering price, less underwriting discounts and commissions.
FuelCell Energy indicated that net proceeds from the sale would be directed toward capital expenditures associated with expanding manufacturing capacity, as well as for working capital and general corporate purposes. The firm emphasized that the offering remains contingent on market conditions and other factors, and that there is no assurance the transaction will be completed or that final terms will remain as announced.
Citigroup and Barclays are named as joint book-running managers for the offering.
FuelCell Energy develops and supplies fuel cell systems that produce electricity at the point of use for a range of customers, including data centers, industrial facilities, utilities and distributed generation users. The company states its systems are designed to provide baseload power for mission-critical applications around the world.
Context and implications
The immediate market reaction was a notable after-hours decline in the company’s share price following the announcement of the equity raise. Management has identified manufacturing capacity expansion among the primary uses for proceeds, highlighting a focus on production capability alongside broader corporate funding needs.
Key financing mechanics disclosed include the underwriters’ 30-day greenshoe-like option to acquire additional shares at the offering price, and the engagement of Citigroup and Barclays to manage the deal.
Note - The offering is subject to market conditions and other factors, and completion and final terms are not guaranteed.