Boeing looking to raise up to approximately $19B in offering

Boeing is planning to raise approximately $19 billion through a significant stock offering, driven by urgent liquidity concerns exacerbated by a contentious strike. The company will offer 90 million shares along with $5 billion in depositary shares to generate cash for corporate purposes, such as debt repayment and investments in subsidiaries. Fitch Ratings noted that this offering could alleviate some financial pressures, helping Boeing manage its debt levels. The company's financial instability is evident with a reported $6 billion operating loss in the third quarter, as it continues to face cash flow challenges into 2025. The ongoing strike, now in its seventh week, is costing Boeing about $100 million daily.

Aviation analyst Scott Hamilton described the stock sale as a “whole blood transfusion” for Boeing, emphasizing its necessity amid the company's recent crises. As Boeing's shares decline, this capital raise is a critical step for regaining operational momentum and addressing its financial difficulties.