AST SpaceMobile Inc (NASDAQ:ASTS) shares are set to plunge more than 22% a day after it raised US$206.5 million from investors including Google, AT&T and Vodafone as the space-based broadband group announced a US$100 million public share offer.
The public offering is priced at US$3.10 per share, a sizeable discount to the US$4.16 at which the stock closed trading on Thursday.
Vodafone was an existing investor in the company, with AT&T and Google joining as new investors to raise a combined US$155 million, with the rest of the funding round coming from an existing credit facility.
Claiming to be the first space broadband service accessible directly by standard smartphones, AST SpaceMobile aims to offer connectivity to around 5.5 billion cellular devices when they are out of coverage from conventional mobile networks.
Its current BlueWalker 3 satellite allows broadband connectivity directly with unmodified mobile telephones, helped by more than 40 agreements and understandings with mobile network operators around the world.
Last month AST said it had secured initial ground infrastructure orders from two customers for its planned commercial service.
Abel Avellan, chairman and CEO of AST SpaceMobile, said yesterday after the Google, AT&T and Vodafone investment that "collaborative innovation and integration with the world's leading wireless companies" was key to the company achieving its aims, with other previous investors Rakuten, American Tower and Bell Canada also part owners, technology partners and customers.
"With this strategic investment, we are gaining capital, invaluable expertise, and strategic partnership."