Ivanhoe Electric Stock Slips After Pricing Equity Offering At 12% Discount

Ivanhoe Electric Inc IE has priced an underwritten public offering of 11.9 million shares at $13.50 per share.

The offer price represents a 12.3% discount to the company’s closing price as of Sept. 13, 2023

Also, Ivanhoe Electric has granted the underwriters a 30-day option to purchase up to an additional 1.8 million shares at the public offering price.

The gross proceeds from the offering are expected to be approximately $160 million before deducting underwriting discounts and commissions.

The company intends to use the net proceeds of the offering for a preliminary feasibility study on the Santa Cruz Project, mineral rights payments, drilling and other exploration activities in addition to working capital and general corporate purposes.

The offering is expected to close on Sept. 18, 2023, subject to customary closing conditions.

Price Action: IE shares are trading lower by 12.22% at $13.51 in premarket on the last check Thursday.