Boeing Shares Jump After $21B Fund Raise, But Retail Remains Pessimistic

Shares of Boeing Inc. ($BA) rose nearly 3% as markets opened on Tuesday after the planemaker successfully raised $21 billion from new stock sales, much higher than the expected $15 billion. 

Boeing decided to raise these funds by selling 112.5 million shares of common stock and $5 billion in special shares called depositary shares. This is an increase from the 90 million shares they initially planned to sell on Monday.

The common stock was sold for $143 per share, bringing in about $15.81 billion, while the depositary shares added another $4.9 billion.

The money raised will be used for various company needs, such as paying off debt, covering operating costs, investing in new projects, and supporting its subsidiaries.

Despite the capital raise, retail sentiment on Stocktwits has fallen into the ‘bearish’ (43/100) zone even with ‘high’ (56/100) message volumes. 

The company is looking to repair its balance sheet with these funds amid its ongoing financial woes, including the union strike that has halted production of its 737 MAX fleet, leading to frustration among clients like Emirates over consecutive delays. 

Boeing’s also reportedly contemplating the sale of its space division to raise funds and limit losses in order to sustain its investment-grade rating.

The company’s stock has lost 39% of its value so far in 2024 and dipped 15% in the last year.

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Read more: Boeing Eyes $15B Capital Raise Amid Strike And Credit Concerns: Retail On The Fence