Changes in US stocks | Proposed issuance of $1 billion convertible bonds raises concerns about equity dilution, AST SpaceMobile (ASTS.US) falls more than 13%

The Zhitong Finance App learned that on Thursday, AST SpaceMobile (ASTS.US) fell more than 13% at the beginning of the session. The stock price is already below its all-time high at the end of May, and is now at $57.09. According to the news, the company revealed plans to raise a large amount of new capital by issuing convertible senior notes, which has raised concerns among existing shareholders about the dilution of shares. The company said it plans to raise $1 billion through private placement of convertible senior notes due February 1, 2034. This offering is affected by market conditions and has not yet been priced or completed. The funds will be used to acquire additional orbital use rights and explore opportunities for partnerships or acquisitions to reduce reliance on third party launch providers.

AST SpaceMobile is building the first satellite network that can directly provide broadband services to ordinary mobile phones. The company has established partnerships with a number of major operators and has successfully launched several BlueBird (BlueBird) satellites. However, building a complete global constellation is still expensive and capital intensive. In February of this year, ASTS announced a similar $1 billion convertible note offering, which also triggered a round of sell-off.