Carnival’s stock drops after proposed $1.5 billion share offering

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Shares of Carnival Corp. tumbled 8.9% in morning trading Tuesday, after the cruise operator disclosed a proposed stock offering program valued at up to $1.5 billion. The filing to sell more shares comes after the stock soared 28.8% on Monday, and less than two weeks after the completion of its previous $1 billion stock offering program. Based on current stock prices, the proposed $1.5 billion “at-the-market” (ATM) equity offering program could represent up to about 85.57 million shares, or 11.9% of the shares outstanding. The company plans to use proceeds from the new stock offering for general corporate purposes. J.P. Morgan Securities and Goldman Sachs & Co. are acting as sales agents under the new offering. Carnival’s stock has now plunged 65.5% year to date, while the S&P 500 has gained 9.7%.
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