Bloomberg News Agency quoted a statement from the company as saying that it sold more than 112 million public shares at a price of $143 per share, as the shares were sold at a discount of 7.7 percent from their price at the close of trading last Friday, which amounted to $155.01.
The company also sold $5 billion worth of depositary shares, representing one-twentieth of the company’s mandatory convertible preferred shares.
On the other hand, shares declined Boeing Yesterday, by 8.2 percent to $150.69 per share, which has lost about 42 percent of its value since the beginning of this year, making it the second worst-performing stock listed on the Dow Jones Industrial Average during the year.
This comes as workers at Boeing’s factory complex in Seattle, United States, continue the strike, which has entered its seventh week and led to the cessation of production of the company’s best-selling aircraft, the 737 MAX, after the company’s proposed new labor contract was rejected.
The proposed contract includes gIncrease wages by 35 percent over a period of 4 years, disbursing a contract ratification grant amounting to $7,000 for each worker, restoring the incentive system and increasing the contribution to the workers’ retirement system, by paying a one-time sum of $5,000 for each worker while increasing the company’s contribution to financing the system by 12 percent. . But the show did not include a replay Retirement system The previous one was abolished by the company 10 years ago and the workers are demanding its return.
Last week, Boeing announced losses of $6.19 billion during the third quarter, equivalent to $10.44 per share, while analysts had expected losses of $10.34 per share.
The company’s total revenues during the third quarter reached $17.84 billion, which was in line with analysts’ expectations.
It is noteworthy that Boeing has not achieved profits since 2018, and the situation is heading towards further deterioration before it begins to improve.
Company challenges
The capital increase is primarily aimed at maintaining Boeing’s credit rating. Rating agencies have warned that a prolonged strike could lead to a downgrade of Boeing’s credit rating, which would likely lead to a higher cost of capital.
The company announced a loss of $6 billion in the third quarter due to labor and production problems.
The strike is costing the company more than $1 billion a month, according to an estimate released before Boeing announced it would cut 10 percent of its workforce.
Boeing plant workers voted last week to reject the company’s latest offer, which included a 35 percent pay increase over four years. The company plans to reduce its workforce by about 10 percent, with cuts likely to include executives, managers and employees, CEO Kelly Ortberg said in an Oct. 11 memo to employees.
