Aurora Announces Closing of $483 Million Upsized Public Offering of Class A Common Stock and Full Exercise of Underwriters’ Option to Purchase Additional Shares

Rhea-AI Summary

Aurora Innovation (Nasdaq: AUR) has successfully closed its upsized public offering, raising approximately $483 million in gross proceeds. The company sold 134,166,667 shares of Class A common stock at $3.60 per share, including the full exercise of the underwriters' option to purchase an additional 17,500,000 shares. The offering was managed by prominent financial institutions, with Goldman Sachs & Co. , Allen & Company , and Morgan Stanley acting as joint book-running managers. The stock was offered through a previously filed and SEC-approved Registration Statement on Form S-3, with a final prospectus supplement and accompanying prospectus detailing the offering terms.

Positive

• Successful closing of an upsized public offering
• Raised approximately $483 million in gross proceeds
• Full exercise of underwriters' option to purchase additional shares
• Strong support from major financial institutions as book-running managers

Negative

• Potential dilution of existing shareholders due to the large number of new shares issued
• Stock price set at $3.60 per share, which may be below recent trading levels

Insights

Financial Analyst

Aurora's $483 million upsized public offering is a significant capital raise that strengthens the company's financial position. The full exercise of the underwriters' option indicates strong demand for Aurora's shares. At $3.60 per share, the offering price represents a slight discount to recent trading levels, which is typical for secondary offerings.

The substantial cash infusion will likely be used to fund Aurora's ongoing development of autonomous vehicle technology and operations. This capital raise extends the company's runway, potentially delaying the need for additional financing in the near term. However, investors should note that dilution from the 134,166,667 new shares issued will impact existing shareholders' ownership percentages.

Tech Expert

This substantial capital raise is a vote of confidence in Aurora's autonomous vehicle technology and business model. The $483 million influx will likely accelerate Aurora's R&D efforts and potentially expedite the commercialization of its self-driving technology. In the competitive autonomous vehicle space, this financial boost could give Aurora an edge in attracting top talent and advancing its technology stack.

However, investors should be aware that the autonomous vehicle industry faces significant regulatory and technological hurdles. While this funding provides Aurora with a stronger foundation, the path to widespread adoption and profitability in the self-driving sector remains long and uncertain.

Market Research Analyst

The successful completion of this upsized offering, including the full exercise of the underwriters' option, signals strong investor appetite for Aurora's stock. This positive reception may indicate growing confidence in the autonomous vehicle sector and Aurora's position within it. The involvement of major underwriters like Goldman Sachs, Allen & Company and Morgan Stanley adds credibility to the offering.

However, the autonomous vehicle market remains highly speculative. While this capital raise strengthens Aurora's position, investors should closely monitor the company's progress in technology development and partnerships. The increased share count may also impact stock liquidity and trading dynamics in the short term.

PITTSBURGH--(BUSINESS WIRE)-- Aurora Innovation, Inc. (Nasdaq: AUR) today announced the closing of its previously announced underwritten upsized public offering for total gross proceeds of approximately $483 million, before deducting underwriting discounts and commissions and other offering expenses.

In the public offering, Aurora sold 134,166,667 shares of its Class A common stock at $3.60 per share, which includes the full exercise by the underwriters of their option to purchase up to 17,500,000 additional shares.

Goldman Sachs & Co. LLC, Allen & Company LLC and Morgan Stanley acted as joint book-running managers and Evercore ISI, Canaccord Genuity, TD Cowen and Wolfe | Nomura Alliance acted as book-runners for the offering.

The Class A common stock in the public offering was offered by Aurora pursuant to a Registration Statement on Form S-3 which was previously filed and declared effective by the U.S. Securities and Exchange Commission (the “SEC”). A final prospectus supplement and accompanying prospectus relating to and describing the terms of the underwritten public offering were filed with the SEC. These documents can be accessed for free through the SEC’s website at www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectus relating to the underwritten public offering may also be obtained from: Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, New York 10282-2198; Allen & Company LLC, Attention: Prospectus Department, 711 Fifth Avenue New York, New York 10022; or Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014.

This press release does not constitute an offer to sell or a solicitation of an offer to buy, nor will there be any sale of these shares of Class A common stock in any state or other jurisdiction in which such offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of any such state or jurisdiction.

About Aurora

Aurora (Nasdaq: AUR) is delivering the benefits of self-driving technology safely, quickly, and broadly to make transportation safer, increasingly accessible, and more reliable and efficient than ever before. The Aurora Driver is a self-driving system designed to operate multiple vehicle types, from freight-hauling trucks to ride-hailing passenger vehicles, and underpins Aurora’s driver-as-a-service products for trucking and ride-hailing.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240802625548/en/

Investor Relations:

Stacy Feit

ir@aurora.tech

Media:

press@aurora.tech

Source: Aurora Innovation, Inc.

FAQ

How much did Aurora Innovation (AUR) raise in its recent public offering?

Aurora Innovation (AUR) raised approximately $483 million in gross proceeds from its recent upsized public offering.

How many shares of AUR stock were sold in the public offering?

Aurora Innovation (AUR) sold 134,166,667 shares of its Class A common stock in the public offering, including the full exercise of the underwriters' option for additional shares.

What was the price per share for Aurora's (AUR) public offering?

The shares of Aurora Innovation (AUR) were sold at $3.60 per share in the public offering.

Which financial institutions managed Aurora's (AUR) public offering?

Goldman Sachs & Co. , Allen & Company , and Morgan Stanley acted as joint book-running managers for Aurora's (AUR) public offering.