Shares of Aurora Innovation Inc.
AUR,
slid 9.9% after hours on Tuesday after the maker of self-driving vehicle technology said it had begun a proposed public share offering of up to $200 million and agreed to a $600 million private sale to certain investors. For the public offering, Aurora said it plans to grant the underwriters a 30-day option to buy up to an extra 15% of the shares to be sold. The company has also entered into a private-placement agreement with “certain existing institutional and strategic investors, entities affiliated with two of Aurora’s directors, and new institutional investors” to sell around $600 million of its shares at a price that will be under $2.70 apiece. Those shares will be sold at a discount to the public-offering price. Share offerings increase the existing supply of shares, thus often lowering their price.
