Why SVB Financial Stock is Plummeting Today


SVB Financial Group SIVB shares are trading lower after the company announced a $1.25 billion common stock offering.

What Happened: On Wednesday, SVB announced that it is seeking over $2 billion in additional funding.

The Details: The company announced plans to offer $1.25 billion of its common stock and $500 million of depositary shares registered as public offerings. SVB also announced its completion of the plan to sell its available-for-sale securities portfolio, selling $21 billion of securities. This transaction will result in an after-tax loss of $1.8 billion in Q1 2023.

Additionally, SVB entered a private purchase subscription agreement with General Atlantic, a growth equity investor, to purchase $500 million of common stock at the public offering price. The deal will also include the option to purchase an additional $187.5 million of common stock and an additional $75 million of preferred stock.

SVB is the financial partner of the innovation economy, helping individuals, investors and the world's most innovative companies achieve their ambitious goals. SVB's businesses include Silicon Valley Bank, SVB Capital, SVB Private, and SVB Securities.

According to data from Benzinga Pro, SVB Financial shares were down 41.8%, trading at $156.11 at the time of publication. The stock has a 52-week high of $597.16 and a 52-week low of $198.10.

Image courtesy of SVB Financial Group

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