Israeli Lidar company Innoviz, listed on the NASDAQ under the ticker symbol INVZ, has announced its plans to sell 26 million shares, resulting in a 20% decline in the company’s stock value. The move comes as Innoviz seeks to raise gross proceeds of $65 million from the sale.
The shares are being offered to the public at a price of $2.50 per share, significantly lower than the previous day’s closing price of $3.14. Underwriters of the deal will have the option to purchase up to 3.9 million shares of INVZ stock. The transaction is expected to be finalized on August 14.
Innoviz has stated that the funds raised from the share sale will be used for general corporate purposes. The company has been collaborating with BMW on the development of advanced Lidar sensors, and the partnership has recently been expanded.
The firm’s financial performance in the last quarter saw a decline in revenue of 18.4%, amounting to just $1.47 million compared to the same period the previous year. Innoviz attributed this decline to its decision to provide Magna with Lidar components instead of complete Lidar units.
In 2023, Innoviz reported a total revenue of $6 million, alongside an operating loss of $133.3 million. As of the end of the last quarter, the company had $121.7 million in cash.
Prior to the share sale announcement, INVZ stock had experienced a 19.3% decline over the previous five days. However, it had still risen by 31% in the preceding three months. In 2023, the stock had dropped by 20%.
Overall, the share sale by Innoviz aims to raise much-needed capital for the company’s operations. While the decline in stock value may raise concerns among shareholders, the expanded partnership with BMW and the potential for growth in the autonomous vehicle industry could present opportunities for Innoviz in the long run.
