LATHAM, N.Y. - Plug Power Inc. (NASDAQ: NASDAQ:PLUG), known for its hydrogen fuel cell systems, has priced its public offering of 78,740,157 shares at $2.54 each. The transaction is expected to conclude around July 22, 2024, subject to customary closing conditions. Additionally, underwriters have a 30-day option to purchase up to 11,811,023 additional shares at the offering price, minus the underwriting discount.
The company anticipates raising approximately $200 million before fees and discounts. Morgan Stanley (NYSE:MS) is the sole book-running manager, with Canaccord Genuity, Oppenheimer & Co., Roth Capital Partners, BTIG, and Craig-Hallum as co-managers.
Plug Power intends to allocate the net proceeds for general corporate purposes. This offering follows an automatic shelf registration statement filed and declared effective by the Securities and Exchange Commission (SEC). A preliminary prospectus supplement has also been filed with the SEC.
Plug Power positions itself as a comprehensive provider in the green hydrogen economy, aiming to decarbonize the economy through its technology. The company has deployed over 69,000 fuel cell systems and more than 250 fueling stations worldwide. It is also the largest purchaser of liquid hydrogen and is developing a green hydrogen highway across North America and Europe.
By the end of 2028, Plug Power plans to have multiple green hydrogen production plants in commercial operation.
The information in this article is based on a press release statement from Plug Power.
In other recent news, Plug Power Inc. received a conditional commitment for a loan guarantee of up to $1.66 billion from the Department of Energy.
Analyst firms have given mixed ratings on Plug Power's shares. Canaccord Genuity and Truist Securities maintained a Hold rating, while BMO Capital maintained an Underperform rating. UBS also maintained a neutral stance but reduced its stock target.
Plug Power has made significant strides in the hydrogen industry, installing and commissioning over 95 megawatts of electrolyzer systems worldwide and securing 7.5 gigawatts in global hydrogen project contracts.
These developments are part of the company's ongoing efforts in the hydrogen fuel market.
InvestingPro Insights
As Plug Power Inc. (NASDAQ: PLUG) ventures into its public offering, investors are keenly observing the company's financial health and growth trajectory. According to real-time data from InvestingPro, Plug Power has a market capitalization of approximately $2.17 billion. Despite the company's ambitious growth plans in the green hydrogen economy, it's important to note that the company has not been profitable over the last twelve months, and analysts do not anticipate profitability this year. This is reflected in the company's negative price-to-earnings (P/E) ratio of -1.82 for the last twelve months as of Q1 2024.
InvestingPro Tips reveal that Plug Power is quickly burning through cash, which may be a contributing factor to its decision to raise capital through this public offering. Additionally, the company's stock generally trades with high volatility, as evidenced by a significant price drop of 77.83% over the past year. This volatility could be a point of consideration for investors who prefer stability in their investments.
For those interested in a deeper analysis, InvestingPro offers additional tips that provide insights into Plug Power's financials and market performance. Currently, there are 10 more InvestingPro Tips available for Plug Pro, which can be accessed at https://www.investing.com/pro/PLUG. These tips could offer valuable perspectives, especially when considering the company's recent performance and future prospects in the rapidly evolving green energy sector.
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