Sable Offshore Corp (SOC) shares took a tumble on Friday afternoon, plummeting by 21.3% to $22.26. This significant drop followed the company’s announcement of a $150 million private placement of 7.50 million shares. The private placement is scheduled to close on September 23, pending standard conditions. The funds raised will be used for capital expenditures, working capital, and general corporate purposes.
Adding to the downward pressure on the stock, Sable Offshore also disclosed that as of September 18, 2024, it had raised $64.8 million from the exercise of warrants, issuing 5.6 million shares. These funds, too, will be used for similar corporate purposes. TD Cowen, Jefferies, and Intrepid Partners are handling the private placement.
The private placement announcement has triggered concerns among investors about potential dilution of existing shareholders. With the issuance of a large number of new shares, the value of each existing share could be negatively affected.
How to Buy SOC Stock
If you’re interested in investing in SOC, you can purchase shares through a brokerage platform. You can also gain exposure to the company by investing in an exchange traded fund (ETF) that holds SOC shares. Alternatively, consider allocating funds in your 401(k) to a strategy that invests in mutual funds or other instruments within the Energy sector, where SOC operates. ETFs often hold shares of several large and liquid companies within a specific sector, providing investors with diversified exposure to that segment.
According to data from Benzinga Pro, SOC has a 52-week high of $28.67 and a 52-week low of $10.11. Investors are closely watching the developments surrounding the private placement and its potential impact on the company’s future.
