FLY
New shares, same old dilution angst
Firefly Aerospace decided to ride its hot streak straight into the stock-sale machine. After the shares closed up nearly 19%, the company announced a proposed public offering of 12 million common shares — 4 million from Firefly and 8 million from selling stockholders.
That’s the kind of move that can make traders hit the brakes. Why? Because even when a company has a good story, a new share sale can tug at the stock like someone sneaking into the buffet with a second plate.
What Firefly says the money is for
The company says it plans to use the proceeds to support growth in its core business plus recently awarded programs and initiatives. In other words: more fuel for the rocket, not a cash grab for the couch cushions.
A few details worth watching:
- Firefly won’t get any proceeds from the shares sold by the existing stockholders.
- The underwriters may also buy up to 1.8 million extra shares if demand is there.
- The company said it had about $326.18 million in cash and cash equivalents as of March 31.
The NASA glow-up, then the after-hours frown
The offering landed on the same day Firefly said it won a $75 million NASA Jet Propulsion Laboratory contract to deliver four drones to the Moon’s south pole. So yes, the business backdrop is shiny. But markets can be weirdly mood-driven: one minute you’re the space-race darling, the next minute traders are side-eyeing dilution.
At the time of publication, FLY was down 4.1% in after-hours trading to $56.40 after spending the regular session up 18.81%.
Big picture: Firefly still has the kind of moonshot narrative Wall Street loves, but fresh shares can put a temporary dent in the party.