Royal Caribbean Is Rushing to Sell as Much Stock as It Can
On Dec. 31, major cruise line Royal Caribbean (NYSE: RCL) filed a press release saying that it had exhausted its entire $1 billion "at-the-market" (ATM) offering the company had initiated on Dec. 3. An ATM means a company can raise money via gradual stock sales in the public market, as opposed to raising equity in big blocks from large investors all at once (which usually requires a discount).
Royal Caribbean sold just over 13 million shares, which equates to an average sale price of roughly $76.65 per share, diluting the company by about 5.8%.
It might seem disappointing to shareholders that the company has chosen to dilute them just as we've gotten a COVID vaccine. However, it's absolutely the right thing to do for the company right now. Here's why.
Source Fool.com
