May. 13 at 10:55 PM
Kodiak Gas Services, Inc. (KGS) shares declined in after-hours trading on Wednesday after the company announced a
$750 million underwritten public offering of common stock. The deal also includes a 30-day option for underwriters to purchase an additional
$112.5 million in shares.
The company said it plans to use net proceeds for general corporate purposes, including repaying part of its asset-backed credit facility and potentially funding growth investments in additional power generation equipment. Any temporary proceeds may also be used to reduce outstanding borrowings under the same credit line.
Goldman Sachs and J.P. Morgan are acting as joint bookrunners for the offering. The deal remains subject to market conditions, with no guarantee of completion or final terms.
The stock decline reflects typical market pressure seen in equity offerings, as new share issuance can dilute existing shareholders.
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