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Shares of American Airlines Group Inc. AAL,
was down 2.1% in pre-market trading on Tuesday, after the airline said it offered a public offering of 38.5 million common shares. The stock offering comes after the stock climbed 15.2% on Monday, amid a sharp rise in airline shares and the broader stock market on positive news about a potential COVID-19 vaccine . Based on Monday’s closing share price of $ 13.20, the offer would raise $ 508.2 million. American plans to grant options to the underwriters to purchase up to 5.78 million additional shares to cover the awards. The company plans to use the proceeds of the offering for general purposes and to improve the liquidity position of the company. The stock has lost 5.7% in the past three months through Monday, while the US Global Jets ETF JETS,
climbed 18.1% and the S&P 500 SPX,
gained 5.7%.
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