(Reuters) -MP Materials said on Wednesday that it would sell $ 500 million from its ordinary shares, one day after the US rare land minor signed a supply agreement with Apple.
The actions of MP materials fell 5.8% in prolonged trade. They have increased by 275% so far this year, giving the company a market value of $ 9.57 billion.
The 500 million dollars agreement with Apple is a coup d’etat for MP and a rare investment by a technological company aimed at reducing its risk of supply for rare earth magnets.
The company based in Las Vegas also signed an agreement of several billion dollars with the US Defense Ministry last week while the government seeks to reduce its dependence on China, which limited rare earth exports in April in response to President Donald Trump’s prices. Although the United States and China have concluded an agreement in June which resolved a large part of the rare land dispute, wider trade tensions continue to highlight the non-Chinese supply.
The Pentagon agreement did not have to make MP documents to issue actions for the general public.
MP said that he intended to use the net supply product to finance growth opportunities and for general business purposes.
The company said that it would give subscribers an option of 30 days to buy up to 15% of its additional shares.
JP Morgan and Goldman Sachs act as joint managers of joint book in the sale of stocks, while Morgan Stanley is another book director.
(Report by Sumit Saha in Bengaluru; edition by Devika Syamnath)
