Joby stock shed some of October's healthy gains Wednesday after the air taxi maker announced a major stock offering.
Joby Aviation said late Tuesday it will sell 30.5 million shares of its common stock at 16.85 per share, which should result in $513.9 million in gross proceeds. The electric vertical take off and landing (eVTOL) manufacturer plans to use the proceeds along with existing cash, equivalents and short-term investments to fund its certification and manufacturing efforts. Joby said the funds will help prepare for its upcoming commercial operations, as well as working capital and other general corporate purposes.
Joby expects the offering to close on Thursday, subject to customary closing conditions. Underwriters were granted a 30-day option to purchase up to an additional 4.575 million shares of common stock.
Joby stock carved 8.2% lower Wednesday, to 17.36.
If the move put shares back near an early buy point at 16.80. Joby cleared that entry at the beginning of the month on a push off its 50-day line.
The stock is trading in a larger cup base with a buy point at 20.95, Joby's record high from Aug. 4.
Still, Joby stock has rallied 114% this year through Tuesday.
Air Show Demo Flights
The stock offering comes after Joby over the weekend completed three air show demonstrations at the California International Airshow in Salinas. The flights included quick round-trips between Marina and Salinas, which can take nearly 40 minutes by car.
The eVTOL maker said that each flight lifted off vertically from Marina, transitioned to cruise for the flight to Salinas where it conducted a series of hover maneuvers, before landing vertically back in Marina.
Joby is preparing to conduct flight testing for its FAA type inspection authorization early next year.
Meanwhile, Joby is conducting similar demonstrations at the Expo 2025 event in Osaka, Japan. The demonstrations are part of Joby and ANA Holdings' plan to develop a national air taxi ecosystem in Japan. Joby on Sept. 30 said it plans to conduct 20 flights at Expo 2025 over the course of 13 days.
The company completed a series of tests flights in Dubai back in June. Joby on Sept. 29 announced a collaboration with the Ras Al Khaimah Transport Authority and Skyports Infrastructure to launch a passenger air taxi service network in the Emirate of Ras Al Khaimah by 2027. Joby continues to lay groundwork in the United Arab Emirates and plans to launch its first passenger-carrying flights in Dubai next year.
The company in 2024 acquired the autonomous division of Xwing, as part of Joby's goal to eventually launch fully-autonomous operations.
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