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By Dhirendra Tripathi
Investing.com – MP Materials Corp (NYSE:MP_t) stock fell 2.5% on Tuesday on news that some of the existing investors will sell more shares of the company than earlier planned, boosting the offering to 4.25 million shares.
The new sale by shareholders of the rare earth miner comprises 250,000 more shares than previously planned. The shares will be sold to the public at $35 apiece, 30 cents higher than its price at 10:55 AM ET.
The sale is almost 2.4% of the company’s outstanding equity. At $35 per share, the transaction adds up to $148.75 million.
The deal size may rise by another $22.31 million if underwriters exercise an over-allotment option to buy 637,500 shares from the sellers.
The company is not selling any shares of its own nor will it receive any proceeds from the transaction, expected to close Thursday. It did not name the sellers.