AST SpaceMobile, Inc. (NASDAQ: ASTS) recently announced the public offering of 12.50 million shares. However, this news caused a significant drop in the company’s stock price, which fell by -23.08% in pre-market trading on Wednesday.
The main purpose behind this offering is for AST SpaceMobile to raise funds for general corporate needs, including cash payments for launch services and additional equipment in the third quarter. The shares will be made available periodically through various channels, such as the Nasdaq, the over-the-counter market, and negotiated transactions. The pricing of the shares will be determined based on prevailing market prices at the time of sale.
AST SpaceMobile aims to create a revolutionary space-based cellular broadband network that can be accessed directly using standard mobile phones. As of press time, the stock price of AST SpaceMobile Inc. stands at $4.90.
On Tuesday, AST SpaceMobile (ASTS) had a strong start to the trading day, opening at $6.77, which was higher than its previous close of $6.73. The trading volume for the day reached 2,532,791 shares (2.53 million), surpassing the average volume of 2.17 million shares over the past three months.