Nikola shares sink after its $100 million stock offering priced at 20% below market

electric heavy truck manufacturer Nikola said it plans $100 million secondary stock offeringAnnounced Thursday after the close of US markets, the price is $1.12 per share – down 20% from the stock’s Thursday closing price of $1.40.

Nikola shares closed Friday down more than 13% at $1.21.

Even with the discount, there appears to be very limited interest on Wall Street in the stock. Nikola’s underwriter, Citigroup, was able to place only a third of the shares with its customers. The truck maker said an unnamed private investor has agreed to buy the remainder directly from Nikola.

Nikola plans to use the funds raised for working capital and other general purposes. The company is preparing to launch a new long-range electric semitruck powered by a hydrogen fuel cell later this year. The new truck will complement Nikola’s smaller range of tray battery-electric heavy trucks, which began shipping last year.

Nikola had $233.4 million in cash and equivalents available as of December 31. truck manufacturer $222.1 million lost In the fourth quarter of 2022.