Rocket Fuel (FUEL) announced the pricing of its 5,000,000 shares public offering which led to FUEL stock taking a nosedive almost immediately.
The tech company started offering those shares at a per-stock price of $61.00. Out of those 5,000,000 shares, Rocket Fuel was selling 2,000,000 and certain stockholders are offering 3,000,000 shares. Additionally, some of the selling stockholders have granted the underwriters a 30-day option to purchase up to 750,000 additional shares of common stock from them.
The move backfired on the company as FUEL stock is down 7.5% Friday. Rocket Fuel works with artificial intelligence in order to improve digital advertising.