Shares of Hewlett Packard Enterprise HPE0.40% dropped in postmarket trading after the company said it has commenced a public offering of $1.35 billion of Series C mandatory company convertible preferred stock.
The stock was down 5.2% to $16.68 on Monday. Shares have increased 3.7% since the beginning of the year.
The edge-to-cloud company said that it plans to use the net proceeds from the offering to fund the acquisition of Juniper Networks.
The company expects to grant underwriters a 30-day option to acquire an additional $150 million of preferred stock. Each share will have a liquidation preference of $50 per share.