Boeing Considers $10 Billion Stock Offering, Shares Dip

Shares of Boeing (NYSE:BA) fell 1% intra-day today following a report from Bloomberg suggesting the aerospace giant is considering raising at least $10 billion through a new stock offering.

According to sources familiar with the matter, Boeing is working with advisors to explore its options. However, any equity raise is unlikely to occur for at least a month, as the company wants to assess the financial impact of an ongoing strike by 33,000 workers in the U.S. Pacific Northwest.

While Boeing has not yet finalized any decisions regarding the timing or size of the potential stock sale, the company could still choose not to proceed with the fundraising effort. If carried out, the stock offering would be the largest by a public company since Saudi Aramco's $12.3 billion sale in June.

The ongoing strike, now in its third week, has seen workers reject two pay proposals from Boeing, further straining the company’s financial and production capabilities. The labor action comes at a challenging time for Boeing, as the company is grappling with supply chain disruptions, a tarnished safety record, and a credit rating nearing junk status.

Boeing’s Chief Financial Officer, Brian West, has expressed concerns that the strike could worsen supply chain issues. Last week, Boeing presented what it described as a "best and final" offer to the workers, which included a 30% general pay increase over four years and improved retirement benefits. However, the International Association of Machinists and Aerospace Workers District 751 rejected the proposal, criticizing Boeing for not negotiating the terms beforehand.