TLDR
- Shares of Intuitive Machines (LUNR) declined approximately 15% Wednesday following the announcement of a $175 million equity offering.
- The lunar technology firm issued 11.6 million shares to institutional buyers at $15.12 each — representing a 20% markdown from Tuesday’s $18.90 closing price.
- This capital raise comes shortly after Intuitive’s $800 million purchase of Lanteris Space Systems, which was finalized in January.
- Capital from the offering will support the expansion of communications infrastructure, Near Space Network capabilities, and orbital data centers.
- Set to close February 27, the offering combined with Lanteris-related shares could result in approximately 26.5% total dilution.
Shares of Intuitive Machines (LUNR) slid approximately 15% during Wednesday’s trading session, falling to $16.04, following the company’s disclosure of a $175 million stock offering.
Intuitive Machines, Inc., LUNR
The Houston-headquartered space technology firm issued roughly 11.6 million shares to institutional buyers at a price of $15.12 per share. This represents a significant 20% markdown compared to the previous session’s closing price of $18.90.
Such substantial discounts typically trigger investor concerns — and Wednesday’s market reaction proved consistent with that pattern.
The equity offering arrives closely following Intuitive’s $800 million takeover of Lanteris Space Systems, completed last month. The transaction involved $450 million in cash alongside $350 million in stock to acquire the satellite manufacturing division from Advent.
This substantial cash outlay considerably reduced the company’s $622 million cash reserve. The precise impact will become evident when Intuitive releases its quarterly results on March 19.
According to company leadership, the newly raised capital will fund the development of Intuitive’s “Near Space Network” — a satellite-based communications infrastructure connecting Earth and the lunar surface, supported by a $4.8 billion NASA agreement.
Executives indicated the proceeds will also support the expansion of orbital data processing centers and enhance communications and data management capabilities. The company aims to serve both forthcoming lunar exploration and Mars mission programs.
Dilution Concerns Weigh on Investors
Aside from the pricing discount, shareholders are also evaluating the dilution implications. The 11.6 million shares from the current offering, when added to an estimated 19.9 million shares issued to Advent in the Lanteris transaction, brings total new issuance to approximately 31.5 million shares.
This translates to roughly 26.5% dilution — a substantial figure that concerns current shareholders.
Intuitive currently maintains approximately 203.2 million shares outstanding, translating to a market capitalization of roughly $3.8 billion based on Tuesday’s closing price.
Deal Expected to Close Friday
The offering is anticipated to finalize on February 27, 2026. Upon completion, the 11.6 million newly issued shares will immediately join the outstanding share count.
Despite Wednesday’s decline, LUNR remains up approximately 16% year-to-date. The stock maintains an average daily trading volume around 10.3 million shares and currently holds a “Buy” technical sentiment rating.
The company has not disclosed the identities of the institutional investors participating in the offering.
Intuitive Machines is slated to announce quarterly earnings on March 19, which should offer additional insight into the company’s liquidity position following the Lanteris acquisition.
