Boeing increases capital by 21 billion USD to improve Liquidity

On October 29th, Boeing raised about $21 billion through a large-scale stock issuance, which is one of the largest stock issuances in the history of public companies. According to the statement, Boeing issued 112.5 million common shares at a price of $143 per share, at a discount of about 7.7% from the closing price of $155.01 per share last Friday. The company also issued $5 billion worth of depositary shares. The capital injection addresses one of the most pressing tasks for the new CEO, Kelly Ortberg. Boeing’s balance sheet has been under pressure due to years of turbulence and the impact of strikes. The strike is currently in its seventh week and is weakening the company’s main cash flow from the production of the 737 Max jet. Boeing needs a capital injection to maintain its investment-grade rating and provide funds for increased production after the strike ends.