Shares of Whirlpool Corp (NYSE:WHR) moved modestly higher in premarket trading Wednesday, gaining about 0.7% to $72.16, even as a prominent shareholder criticized the company’s recent capital raise.
The appliance manufacturer said it had priced a public offering of roughly 6.9 million common shares at $69 each, generating approximately $475 million in proceeds. In addition, Whirlpool issued $525 million of three-year mandatory convertible preferred stock carrying an 8.5% dividend.
Alongside the public offering, the company completed a $30 million private placement of shares at the same $69 price to Guangdong Whirlpool Electrical Appliances Co., a subsidiary of Shanghai-listed Whirlpool China (SS:600983).
The fundraising drew pushback from billionaire investor David Tepper, founder of hedge fund Appaloosa Management, who sent a letter to Whirlpool’s board expressing concerns about the transaction. Tepper argued the equity issuance was executed at an excessively high cost of capital and caused significant and avoidable shareholder dilution.
Appaloosa is the company’s third-largest shareholder, holding about 3.9 million shares — nearly 7% of Whirlpool’s approximately 56.52 million shares outstanding, according to LSEG data.
Whirlpool stock had dropped roughly 14% on Tuesday to close at $71.67 after the company announced the concurrent $800 million capital raise. Management said the proceeds will primarily be used to reduce debt and support general corporate purposes, including investments aimed at expanding automation capabilities.