Boeing launched an offering consisting of 90 million shares of common stock and $5 billion in depositary shares.
The company has indicated that it expects to grant underwriters a 30-day option to purchase an additional 13.5 million shares of common stock and $750 million in depositary shares to cover any potential over-allotments.
Boeing intends to utilize the net proceeds from these offerings for general corporate purposes, including debt repayment, working capital enhancements, capital expenditures, and investments in its subsidiaries.
On October 15, 2024, Boeing revealed plans to obtain up to $35 billion in funding. In a second financial update, Boeing submitted a request to the US Securities and Exchange Commission and received a green light to raise as much as $25 billion through stock and debt sales.
Boeing has faced significant difficulties and financial issues lately, including a six-week strike that impacted the production of its top-selling aircraft. On October 23, 2024, the International Association of Machinists and Aerospace Workers (IAM) Local 751, announced that 64% of its 33,000 Boeing members had rejected the latest contract proposal put forth by their employer.
On the same day, the company revealed its third-quarter results for 2024, showing a net loss of $6.17 billion.
Boeing’s safety and quality procedures are also under scrutiny. This comes as the company still faces the consequences relating to a door blowout on January 5, 2024, involving an Alaska Airlines Boeing 737 MAX 9.