Shares of American Airlines Group Inc. AAL, -6.21% pulled back 2.1% in premarket trading Tuesday, after the air carrier said it proposed a public offering of 38.5 million shares of common stock.
The stock offering comes after the stock soared 15.2% on Monday, amid a big run up in airline shares and the broader stock market on positive news on a potential COVID-19 vaccine. Based on Monday’s stock closing price of $13.20, the offering would raise $508.2 million. American plans to grant the underwriters options to buy up to an additional 5.78 million shares to cover allotments. The company plans to use the proceeds from the offering for general corporate purposes and to enhance the company’s liquidity position. The stock has lost 5.7% over the past three months through Monday, while the U.S. Global Jets ETF JETS, -1.55% has climbed 18.1% and the S&P 500 SPX, -0.14% has gained 5.7%.