3D Systems Corp (NYSE:DDD) came under pressure in premarket trading on Thursday after completing an enlarged secondary stock offering, with shares falling more than 14% to below $3.10.
The sharp decline followed the announcement that the 3D printing company had priced a $50 million equity raise, increasing the size of the transaction from the originally proposed $40 million.
Offering Priced at Discount to Market
The Rock Hill, South Carolina-based manufacturer sold approximately 16.4 million new shares at a price of $3.05 per share late on Wednesday.
The offering was priced at a 15.5% discount to the stock’s previous closing level, a factor that weighed on investor sentiment and contributed to the premarket selloff.
Proceeds Target Growth and Corporate Needs
According to the prospectus, the company intends to allocate the net proceeds toward supporting ongoing operations and strategic growth initiatives.
Funds raised will be used for capital investments, working capital requirements and other general corporate purposes as management seeks to strengthen the business and support future expansion.
Needham and Craig-Hallum acted as joint bookrunners on the transaction.
Strong Quarterly Performance Prior to Pullback
Despite Thursday’s decline, 3D Systems had delivered a strong share price performance in recent months.
Through Wednesday’s close, the stock had advanced approximately 92% during the current quarter, reflecting renewed investor interest in the additive manufacturing sector.
Following the latest offering, the company has approximately 146.9 million shares outstanding.