Intuitive Machines' Stock Market Crash: Capital Increase and Price Reduction Weigh

The shares of Intuitive Machines suffered a significant setback, falling by 14.2% after the aerospace company made two major announcements within just 24 hours. First, it was announced after the market closed on Tuesday that Intuitive plans to generate up to $73.9 million through a public stock offering, with an additional option and a further $10 million in a private placement. In total, the company is thus aiming for cash inflow of $83.9 million. The targeted price range per share was between $10.25 and $11.25. On Wednesday morning, Intuitive Machines surprised again: the number of shares offered was increased, but the price was reduced to the lower end of the price range. According to official information, approximately 10.8 million shares could be publicly offered and 952,381 privately placed, increasing the total volume to about $123.4 million. Additionally, a shareholder is also selling a small portion of their stake, from which Intuitive will not derive any proceeds. The new funds are intended for general corporate purposes, including operations, research, development, and potential mergers and acquisitions – a necessary step considering that the cash outflow exceeded $75 million last year and continues to rise. Although Intuitive Machines has secured some lucrative contracts from NASA, Wall Street analysts do not expect the company to become cash flow positive and profitable until 2026. However, the successful capital raising could help bridge this financial gap until the company independently generates profits. However, the issuance of 11.8 million new shares, with a current total share count of 80.9 million, results in a dilution of current shareholders' stakes by 14.5%, making the recent drop in share price understandable. Those who often feel they missed the right timing with the most successful stocks should take note: occasionally, our team of experts advises to "double down" on companies that are on the brink of a breakthrough.