In an exciting development for the self-driving technology firm, Aurora Innovation, Inc., recently announced a highly successful financial maneuver. The company conducted both an underwritten public offering and a concurrent private placement, raking in total gross proceeds of approximately $820 million. This strategic move demonstrates Aurora’s commitment to growth and reflects investor confidence in its future prospects. In this article, we delve deeper into the details of Aurora’s financial decisions, their impact on the company’s trajectory, and the significance of this announcement in the automotive and tech industries.
The Upsized Public Offering
Aurora Innovation’s underwritten public offering involved the sale of 73,333,333 shares of its Class A common stock at an impressive price of $3.00 per share. With the underwriters’ option to purchase up to an additional 10,999,999 shares at the same offering price, Aurora is poised to receive gross proceeds of approximately $220 million from the public offering alone. The offering is expected to conclude on or around July 21, 2023, subject to customary closing conditions. This sizable sum reinforces the company’s financial strength and its ability to attract significant investor interest.
The Concurrent Private Placement
Photo: Tina Bellon
In conjunction with the public offering, Aurora also executed a private placement with selected institutional and strategic investors. This placement involved issuing and selling 222,222,216 shares of its Class A common stock at $2.70 per share, resulting in aggregate gross proceeds of $600 million. Notably, the securities offered in the concurrent private placement are not registered under the Securities Act of 1933. This separate financial move serves as an excellent complement to the public offering, demonstrating Aurora’s efforts to diversify its funding sources and expand its capital base.
The Role of Goldman Sachs, Allen & Company, and Other Parties
Aurora Innovation enlisted reputable financial institutions to facilitate these transformative financial transactions. Goldman Sachs & Co. LLC and Allen & Company LLC acted as joint book-running managers for the underwritten public offering, while Evercore ISI served as the book-runner. Additionally, Canaccord Genuity, TD Cowen, and Nomura acted as co-managers for the public offering. For the concurrent private placement, Allen & Company LLC and Goldman Sachs & Co. LLC played dual roles as placement agents. The involvement of these established institutions signals the attractiveness of Aurora’s investment proposition to seasoned financial players and the market’s recognition of the company’s growth potential.
Regulatory Compliance and Prospectus Details
Photo: AURORA
Aurora’s financial moves are in strict compliance with regulatory requirements. The company filed a Registration Statement on Form S-3, which the U.S. Securities and Exchange Commission (SEC) declared effective. Aurora also filed preliminary prospectus supplements and accompanying prospectuses that provide comprehensive information on the terms of the underwritten public offering. It plans to file a final prospectus supplement and accompanying prospectus with the SEC. Interested parties can access these documents through the SEC’s website. Additionally, copies of the final prospectus supplement and accompanying prospectus can be obtained from Goldman Sachs & Co. LLC and Allen & Company LLC.
Implications for Aurora Innovation’s Future
Aurora Innovation’s successful capital-raising efforts have significant implications for its future growth and development. The substantial funds secured from both the public offering and the concurrent private placement will fuel the company’s ambitious expansion plans and investments in autonomous vehicle technology. These resources will allow Aurora to enhance its research and development, accelerate product innovation, and bolster its position in the fiercely competitive self-driving technology landscape.
Conclusion
Aurora Innovation’s recent financial moves have demonstrated the company’s commitment to its growth trajectory and garnered substantial investor confidence. The successful $820 million offering, comprising an underwritten public offering and a concurrent private placement, strengthens Aurora’s financial position and provides ample resources to drive innovation in the autonomous vehicle space. With esteemed financial institutions supporting its endeavors, Aurora is well-positioned to capitalize on its technological prowess and make strides in shaping the future of autonomous mobility.
