Redwire Corp (NYSE:RDW) saw its stock decline 17.5% after the aerospace and defense tech firm announced pricing for its upsized common stock offering at $16.75 per share.
The company plans to issue 15.5 million shares, aiming to raise roughly $260 million in gross proceeds. Additionally, underwriters have been granted a 30-day option to buy up to 2.3 million more shares at the same price.
Proceeds from the offering will be used for general corporate purposes, including supporting growth projects. Redwire also intends to repurchase some of its convertible preferred stock and repay a seller note linked to its acquisition of Edge Autonomy Intermediate Holdings, LLC.
The offering is anticipated to close around June 18, 2025, pending customary closing conditions. Leading the offering are J.P. Morgan, BofA Securities, and Morgan Stanley, with Texas Capital Securities, Truist Securities, and Roth Capital Partners acting as joint book-running managers.
The sharp share decline reflects investor concerns about dilution from the new share issuance, despite Redwire’s efforts to mitigate this impact through repurchasing preferred shares.