Joby Aviation, Inc. Announces Pricing of Public Offering of Common Stock

Rhea-AI Summary

Joby Aviation (NYSE: JOBY), an electric air taxi developer, has announced the pricing of its public offering of 40,000,000 shares of common stock at $5.05 per share. The company expects to raise $202 million in gross proceeds before underwriting costs. Joby has also granted underwriters a 30-day option to purchase up to 6,000,000 additional shares. The proceeds will fund certification, manufacturing efforts, commercial operations preparation, and general corporate purposes. The offering is expected to close on October 28, 2024, with Morgan Stanley and Allen & Company serving as joint book-running managers.

Positive

• Substantial capital raise of $202 million strengthening the company's financial position
• Funding secured for critical business operations including certification and manufacturing
• Additional potential proceeds from 6,000,000 share option granted to underwriters

Negative

• Significant shareholder dilution through 40,000,000 new shares issuance
• Potential further dilution if underwriters exercise their option for additional shares

Insights

Financial Analyst

This $202 million stock offering represents significant capital raising for Joby, diluting existing shareholders by approximately 8.7% based on current shares outstanding. The pricing at $5.05 per share reflects a modest 4.9% discount to recent trading levels, indicating relatively healthy market demand. The additional capital strengthens Joby's balance sheet at a important time as they progress toward aircraft certification and manufacturing scale-up.

The offering's successful pricing demonstrates continued investor confidence in Joby's execution pathway, though the dilution impact warrants attention. The proceeds provide an estimated 12-18 months of additional runway at current burn rates, supporting critical milestones in certification and manufacturing infrastructure development. Morgan Stanley's involvement as lead underwriter adds credibility to the offering.

SANTA CRUZ, Calif.--(BUSINESS WIRE)-- Joby Aviation, Inc. (NYSE: JOBY), a company developing electric air taxis for commercial passenger service, announced today the pricing of its underwritten public offering of 40,000,000 shares of common stock at a public offering price of $5.05 per share, before underwriting discounts and commissions. All of the shares of common stock are being offered by Joby. In addition, Joby has granted the underwriters a 30-day option to purchase up to an additional 6,000,000 shares of common stock at the public offering price, less underwriting discounts and commissions. The gross proceeds from the offering, before deducting underwriting discounts and commissions and other offering expenses payable by Joby, are expected to be $202 million, excluding any exercise of the underwriters’ option to purchase additional shares. Joby currently intends to use the net proceeds that it will receive from the offering, together with existing cash, cash equivalents and short-term investments, to fund its certification and manufacturing efforts, prepare for commercial operations and for general working capital and other general corporate purposes. The offering is expected to close on October 28, 2024, subject to satisfaction of customary closing conditions.

Morgan Stanley and Allen & Company LLC are acting as joint book-running managers for the offering.

A registration statement on Form S-3 relating to the shares being sold in this offering was filed with the U.S. Securities and Exchange Commission (the “SEC”) on October 24, 2024 and became automatically effective upon filing. This offering is being made only by means of a prospectus. A copy of the final prospectus supplement and the accompanying prospectus relating to this offering, when available, may be obtained for free by visiting EDGAR on the SEC’s website at www.sec.gov. Alternatively, a copy of the final prospectus supplement and the accompanying prospectus relating to this offering, when available, may be obtained from: Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014; or Allen & Company LLC, Attention: Prospectus Department, 711 Fifth Avenue, New York, New York 10022.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Joby

Joby Aviation, Inc. (NYSE: JOBY) is a California-based transportation company developing an all-electric, vertical take-off and landing air taxi, which it intends to operate as part of a fast, quiet and convenient service in cities around the world.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the completion and timing of closing of the offering and the intended use of the proceeds. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate”, “estimate”, “expect”, “project”, “plan”, “intend”, “believe”, “may”, “will”, “should”, “can have”, “likely” and other words and terms of similar meaning. Forward-looking statements represent Joby’s current expectations regarding future events and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those implied by the forward-looking statements. Among those risks and uncertainties are market conditions, including the trading price and volatility of Joby’s common stock and risks relating to Joby’s business and the satisfaction of closing conditions in the underwriting agreement related to the offering. For a further description of the risks and uncertainties relating to Joby’s business in general, see the prospectus supplement related to the offering and Joby’s current and future reports filed with the SEC, including its Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 27, 2024. The forward-looking statements included in this press release speak only as of the date of this press release, and Joby does not undertake to update the statements included in this press release for subsequent developments, except as may be required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241024899106/en/

Investors:

investors@jobyaviation.com

Media:

press@jobyaviation.com

Source: Joby Aviation, Inc.

FAQ

How many shares is JOBY offering in its October 2024 public offering?

Joby Aviation is offering 40,000,000 shares of common stock, with an additional 30-day option for underwriters to purchase up to 6,000,000 more shares.

What is the price per share for JOBY's 2024 public offering?

The public offering price is $5.05 per share, before underwriting discounts and commissions.

How much money will JOBY raise from its October 2024 stock offering?

Joby expects to raise $202 million in gross proceeds before deducting underwriting discounts and commissions and other offering expenses.

What will JOBY use the proceeds from its 2024 stock offering for?

Joby will use the proceeds to fund certification and manufacturing efforts, prepare for commercial operations, and for general working capital and corporate purposes.