Cleveland-Cliffs Inc. (NYSE:CLF) shares tumbled nearly 9% on Thursday after the U.S. steelmaker announced the pricing of a major public share offering aimed at raising close to $1 billion in gross proceeds.
The company said it has priced 75 million common shares at approximately $12.85 each, with UBS Securities LLC acting as the sole underwriter. The underwriter also received a 30-day option to purchase an additional 11.25 million shares. The offering is scheduled to close on October 31, 2025, subject to customary conditions.
Following the announcement, Cleveland-Cliffs stock slipped to $12.73 in premarket trading, down from Wednesday’s closing price of $14.09, as investors reacted to concerns about share dilution resulting from the sizable issuance.
The company expects to use the proceeds primarily to repay borrowings under its asset-based credit facility, with any remaining funds designated for general corporate purposes.
The offering represents a meaningful expansion of Cleveland-Cliffs’ outstanding share base, leading to the sharp decline in share price as existing shareholders face dilution of their stakes. The company did not specify the exact portion of debt it plans to retire with the new capital.
Based in Cleveland, Ohio, the company is one of North America’s largest flat-rolled steel producers and a leading supplier of iron ore pellets to the regional steel industry.