Celestica (NYSE:CLS) shares dropped around 15% on Thursday after the electronics manufacturing company announced a $3 billion public share offering priced at a discount to its previous closing price.
The capital raise is intended to strengthen the company’s balance sheet and support future investment, although the discounted pricing weighed heavily on investor sentiment.
Offering priced below market value
Celestica is issuing 9,677,419 common shares at $310 each, below Wednesday’s closing price of $362.76 per share.
The transaction is expected to generate gross proceeds of approximately $3 billion before underwriting discounts and other offering-related expenses.
In addition, the company granted the underwriters a 30-day option to purchase up to 1,451,612 additional common shares.
Proceeds to support expansion and corporate needs
Management said the funds raised will be used to provide additional working capital, finance capital expenditure projects and support other general corporate purposes.
The financing is expected to give Celestica greater flexibility as it continues investing in manufacturing capacity and long-term growth initiatives.
Closing expected this week
The share offering is scheduled to close on or around August 7, 2026, subject to customary closing conditions, including approval for the newly issued shares to trade on both the New York Stock Exchange and the Toronto Stock Exchange.
Major banks lead the transaction
BofA Securities and Citigroup are serving as joint lead bookrunners for the offering, while TD Securities is acting as bookrunner.
The sizeable equity raise comes after a strong run in Celestica’s share price, with the discounted issue prompting investors to lock in gains despite the company’s plans to deploy the proceeds toward future growth.
Celestica stock price
