Joby Aviation has priced its upsized public offerings of common stock and convertible senior notes, raising gross proceeds of approximately $1.2bn to fund certification, manufacturing and preparation for commercial operations.
The company will issue $600 million of 0.75% convertible senior notes due 2032 and sell around 52.9 million shares of common stock at $11.35 per share. In addition, Morgan Stanley will offer 5.28 million borrowed shares in a separate “delta offering” to facilitate hedging transactions by certain note investors. Joby will receive no proceeds from the delta offering.
The convertible notes will mature on 15 February 2032, unless earlier repurchased, redeemed or converted, and will accrue interest at 0.75% per annum. The initial conversion rate is 70.4846 shares per $1,000 principal amount, implying an initial conversion price of approximately $14.19 per share.
The combined size of the stock and note offerings was increased from the previously announced $1.0 billion. Joby also granted underwriters a 30-day option to purchase up to an additional $90 million of notes and up to 7.9 million additional shares.
Net proceeds are expected to be approximately $576 million from the equity offering, rising to $662.4 million if the share over-allotment option is exercised. Net proceeds from the convertible note offering are expected to be about $583 million, increasing to $670.4 million if the note over-allotment option is exercised.
Around $55 million of the note proceeds will be used to fund capped call transactions designed to reduce potential dilution. The remaining funds, together with existing cash, will be used to support aircraft certification and manufacturing, prepare for commercial operations, and for general corporate purposes.
The offerings are expected to settle on 2 February 2026, subject to customary closing conditions.
Morgan Stanley, Allen & Company and BofA Securities are acting as joint bookrunners on the equity offering, while Morgan Stanley, BofA Securities, Allen & Company and Goldman Sachs are joint bookrunners on the convertible note offering.