Albemarle Corp (NYSE:ALB) shares are trading lower after the bell on Monday following a proposed offering from the lithium producer.
What Happened: Albemarle has commenced an offering of $1.75 billion of depositary shares in an underwritten registered public offering. The company plans to grant the underwriters a 30-day option to purchase up to an additional $262.5 million of its depositary shares.
Albemarle said it intends to use the net proceeds for general corporate purposes, which may include funding growth capital expenditures, such as the construction and expansion of lithium operations in Australia and China, and repaying the company’s outstanding commercial paper.
Albemarle reported fourth-quarter financial results in mid-February. The company said it had approximately $1.9 billion in liquidity, including $889.9 million in cash and cash equivalents as of Dec. 31.
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ALB Price Action: Albemarle shares were down 9.38% after hours at $120.70 at the time of publication, according to Benzinga Pro.
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