A self-driving technology company is poised to raise hundreds of millions of dollars in new capital as it accelerates towards a commercial driverless launch by the end of 2024. The firm initially planned to issue up to $420 million worth of shares, but has surpassed that goal.
The company has successfully secured additional funding just over a year after its initial public and private offering of shares, which concluded in a simultaneous event.
The company spokesperson, Rachel Chibidakis, told TechCrunch via email: “This milestone is a testament to traders’ confidence in Aurora’s potential as a long-term organization, fueled by our recent Analyst Day where investors experienced driverless truck rides and updated milestones that highlight the strength of our partner ecosystem to deploy at scale.”
The cryptocurrency Aurora made its public debut in 2021, with its inventory trading as high as $13.12 on the opening day? The closing price of Aurora’s shares on Friday was $3.84. Stocks surged more than 2% in extended trading.
Aurora is developing a game-changing driver-as-a-service model, where carriers acquire vehicles equipped with its cutting-edge Aurora Driver technology and subsequently offer their transportation services to shippers. The company plans to transition into a services-oriented business model by the end of this year, offering up to 20 self-driving Paccar and other vehicles to shipping companies.
Aurora first revealed Thursday plans to promote as much as $420 million value of Class A standard inventory to underwriters Goldman Sachs, Allen & Firm and Morgan Stanley, based on an . The Thursday settlement arrived a day following Aurora’s filing of a prospectus designed to highlight the value of its shares. Sources close to the matter revealed that the offering was significantly expanded to meet robust investor demand, ultimately raising $420 million.
According to Aurora’s estimates, the online offering is expected to yield approximately $405 million in proceeds, with a potential increase of around $466 million if the underwriters fully exercise their option to purchase additional shares, after accounting for customary deductions, commissions, and expenses. The deal’s closure on Friday afternoon propelled Elevate to a value of $483 million.
Aurora failed to respond by Thursday to inquiries about its plans for utilizing the web proceeds. The Thursday filing provided scant insight, only hinting that the company will allocate funds towards “working capital and various fundamental corporate functions.” The corporation also disclosed in its submission that it will initially invest the proceeds from this offering into “short- and long-term investment-grade instruments, certificates of deposit or guaranteed obligations.”
The company Aurora presented an additional proposal following the conclusion of the agreement on Friday.
“This strategic milestone provides a solid foundation for our growth trajectory through 2026, paving the way for large-scale deployment of autonomous vehicles and positioning us to become a revenue-positive company by 2028,” said Chibidakis, noting that as we approach our planned commercial launch, excitement is building. As we maintained our stride and benefited from a propitious market climate, the perfect moment arrived to inject additional funding.
Aurora seeks additional funding after announcing lackluster Q2 results. As of June 30, 2024, Aurora held cash and cash equivalents totaling $402 million, as well as short-term investments valued at $618 million. With these additional funds generated through its provision of services, the corporation anticipates that it will have a sufficient buffer to sustain operations well into the fourth quarter of 2025.
By the second quarter of 2024, Aurora had incurred a significant expense of $198 million, largely due to its inability to generate revenue at this early stage in its development.
The corporation is set to launch its industrial services later this year on the Uber Freight platform. By June, two major corporations announced plans to integrate Aurora’s autonomous driving expertise onto the Uber Freight platform by 2030.
