Bruker Faces Investor Backlash After Surprise Equity Offering

Investors in Bruker Corporation were taken by surprise when the instrument and diagnostics manufacturer announced a substantial capital raise, sending its shares plummeting to a new annual low. The move, aimed at strengthening the company’s balance sheet, has instead triggered concerns over significant shareholder dilution and raised questions about the stock’s near-term prospects.

In early September, Bruker initiated a public offering of convertible preferred stock with a total value of $600 million. Management stated that the net proceeds would be used primarily to fully repay a term loan due in December 2026 and to reduce outstanding balances on the company’s revolving credit facilities. This effort targets Bruker’s substantial debt load, which currently stands at $2.38 billion.

However, the... Read more...