AMSC Prices Upsized $60 Million Public Offering of Common Stock
- None.
- The public offering could potentially dilute the value of existing shares for current shareholders.
Insights
The pricing of American Superconductor Corporation's public offering at $11.25 per share for 5,400,000 shares translates into a significant capital infusion of approximately $60.75 million. This move is indicative of the company's strategic efforts to strengthen its balance sheet and secure funding for future operations. The intended use of proceeds for working capital and general corporate purposes is broad, suggesting flexibility in addressing operational needs and potential investments or debt servicing.
From a financial perspective, the offering's impact on current shareholders will be dilutive. The increase in the number of outstanding shares can lead to earnings per share (EPS) dilution, a common concern for investors as it may affect the stock's value. However, if the capital raised is deployed effectively to generate a return greater than the cost of capital, the long-term effects could be beneficial.
Additionally, the underwriters' option to purchase an additional 810,000 shares provides a buffer that could lead to extra capital if exercised, albeit with further dilution. The market's response to this offering will be a critical indicator of investor confidence in AMSC's growth prospects and financial health.
In the context of the power resiliency solutions industry, American Superconductor's offering is a strategic move that aligns with the sector's capital-intensive nature. The company's focus on megawatt-scale power resiliency solutions is particularly relevant as the global demand for reliable power infrastructure is on the rise, driven by factors such as renewable energy integration and grid modernization.
Investing the proceeds in working capital and general corporate purposes could enable AMSC to capitalize on emerging opportunities within the industry, such as partnerships, research and development and expansion into new markets. This could position the company favorably against competitors and potentially increase its market share.
However, the success of such investments will largely depend on the company's ability to execute its business strategy effectively. Stakeholders should monitor AMSC's operational performance post-offering to gauge the efficacy of the capital allocation.
The public offering's compliance with regulatory requirements and the involvement of underwriters suggest adherence to legal and financial standards. The 30-day option for underwriters to purchase additional shares is a standard practice that offers a safety net for both the company and the underwriters, allowing flexibility to respond to market demand.
It's crucial for investors to consider the legal framework of such offerings, as it can affect the timing and success of the transaction. The mention of customary conditions indicates that while the offering is expected to close, it remains subject to regulatory approvals and market conditions that could impact the finalization of the deal.
Understanding the legal intricacies of public offerings can provide investors with insights into the potential risks and delays that may arise, thereby affecting their investment decisions.
AYER, Mass. , Jan. 31, 2024 (GLOBE NEWSWIRE) -- American Superconductor Corporation (Nasdaq: AMSC), a leading system provider of megawatt-scale power resiliency solutions that orchestrate the rhythm and harmony of power on the grid™ and protect and expand the capability and resiliency of our Navy’s fleet, announced today that it has priced its underwritten public offering of 5,400,000 shares of its common stock at a public offering price of
Oppenheimer & Co. Inc. is acting as the sole book-running manager for the offering. Craig-Hallum Capital Group LLC and Roth Capital Partners, LLC are acting as co-managers for the offering.
A shelf registration statement relating to the shares of common stock to be issued in the proposed offering was filed with the Securities and Exchange Commission (SEC) and is effective. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, these securities, nor will there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale is not permitted.
A preliminary prospectus supplement and accompanying prospectus describing the terms of the offering has been filed with the SEC and a final prospectus supplement will be filed with the SEC. Copies of the final prospectus supplement and the accompanying prospectus relating to the securities being offered may also be obtained, when available, from Oppenheimer & Co. Inc. Attention: Syndicate Prospectus Department, 85 Broad Street, 26th Floor, New York, NY 10004, or by telephone at (212) 667-8563, or by email at EquityProspectus@opco.com. Electronic copies of the final prospectus supplement and accompanying prospectus will also be available on the SEC’s website at http://www.sec.gov.
©2024 AMSC. AMSC, American Superconductor, D-VAR, D-VAR VVO, Gridtec, Marinetec, Windtec, Neeltran, NEPSI, Smarter, Cleaner … Better Energy, and Orchestrate the Rhythm and Harmony of Power on the Grid are trademarks or registered trademarks of American Superconductor Corporation. All other brand names, product names, trademarks or service marks belong to their respective holders.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, among other things, statements regarding the completion of the offering, the expected gross proceeds therefrom, the intended use of net proceeds therefrom, and other statements containing the words "intends," "believes," "anticipates," "plans," "expects," "will" and similar expressions. Such forward-looking statements represent management’s current expectations and are inherently uncertain. There are a number of important factors that could materially impact the value of AMSC’s common stock or cause actual results to differ materially from those indicated by such forward-looking statements. These important factors include, but are not limited to: the risk and uncertainties associated with market conditions, satisfaction of customary closing conditions related to the public offering, as well as risks and uncertainties in AMSC’s business, including those risks discussed in the "Risk Factors" section in the preliminary prospectus supplement related to the offering and in Part 1. Item 1A of AMSC’s Annual Report on Form 10-K for the fiscal year ended March 31, 2023 and AMSC’s other reports filed with the SEC. These important factors, among others, could cause actual results to differ materially from those indicated by forward-looking statements made herein and presented elsewhere by management from time to time. Any such forward-looking statements represent management’s estimates as of the date of this press release. While AMSC may elect to update such forward-looking statements at some point in the future, AMSC disclaims any obligation to do so, even if subsequent events cause its views to change. These forward-looking statements should not be relied upon as representing its views as of any date subsequent to the date of this press release. This caution is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
AMSC Contacts
Investor Relations Contact:
LHA Investor Relations
Carolyn Capaccio
(212) 838-3777
amscIR@lhai.com
AMSC Senior Communications Manager:
Nicol Golez
Phone: 978-399-8344
Nicol.Golez@amsc.com
FAQ
What is the ticker symbol for American Superconductor Corporation?
How many shares were offered in the public offering?
What is the public offering price per share?
What are the expected gross proceeds from the offering?
What will the net proceeds from the offering be used for?
Has the company granted the underwriters any additional shares?
