Shares of Plug Power Inc. PLUG, -8.08% tumbled 10.8% in premarket trading Tuesday, after the hydrogen fuel cell company’s upsized public offering of stock priced at a discount. After Plug’s stock closed Monday up 6.7% at a 12-year high of $25.00, the company said it launched a public offering of $750.0 million worth of its common stock, which at Monday’s closing price would represent about 30 million shares.
Later Monday evening, the company said its offering of 38 million shares priced at $22.25 a share, or 11% below Monday’s closing price, as the company raised $845.5 million. The offering represented about 9.1% of the shares outstanding. Plug said it also granted the underwriter of the offering, Morgan Stanley, options to buy up to an additional 5.7 million shares at the public offering price. Plug plans to use the proceeds from the offering for working capital and other general corporate purposes. The stock has more than doubled (up 104.9%) over the past three months through Monday, while the S&P 500 SPX, -0.47% has gained 7.2%.