Redwire Shares Fall 19% After Pricing $260M Public Offering

Shares of aerospace and defense technology company Redwire Corporation (RDW) have fallen sharply by approximately 18-19% following the pricing of an upsized public offering of common stock at $16.75 per share, aiming to raise about $260 million. The company plans to use the proceeds for general corporate purposes, including funding growth initiatives, repurchasing convertible preferred stock, and repaying a seller note related to a recent acquisition. Despite the drop in stock price due to dilution concerns, analysts maintain an average target price well above the current levels, with a consensus 'Outperform' rating. Redwire's recent financials showed improvement, with adjusted EBITDA losses narrowing and net losses decreasing significantly. The offering includes a 30-day option for underwriters to purchase additional shares, and the deal is expected to close around June 18, 2025. Market reaction reflects caution over dilution, but Redwire continues to secure contracts and partnerships that bolster its position in space infrastructure.