Intuitive Machines (LUNR) saw its shares tumble 15.6% in midday trading Wednesday after the lunar-technology company disclosed plans to sell up to $500 million in Class A common stock through an at-the-market (ATM) offering program. The stock was trading at $33.41, down sharply from previous levels, with volume surging past 10.7 million shares on the Nasdaq.
The ATM program, announced in a June 3 filing with the SEC, allows the company to sell shares incrementally over time at prevailing market prices, giving management flexibility to raise capital without a single large block sale. However, the move immediately sparked dilution concerns among investors, as each existing share could represent a smaller ownership stake in the company if the full $500 million is tapped.
Under the sales agreement, Intuitive Machines has engaged a syndicate of eight investment banks as agents, including Barclays, Cantor Fitzgerald, B. Riley, Canaccord Genuity, Deutsche Bank, KeyBanc, Roth Capital, and Stifel. The agents may receive commissions of up to 3% of the sale price per share. Proceeds will be managed by Intuitive Machines OpCo and used for general corporate purposes, including research and development, working capital, capital expenditures, and potential acquisitions.
The filing did not specify the exact number of shares to be issued or the total amount to be raised, noting that these details are not yet determinable. With Intuitive Machines valued at approximately $4.94 billion at midday, a fully utilized $500 million ATM would represent a significant capital infusion relative to its market cap, amplifying the overhang on the stock.
ATM programs often weigh on stocks that have rallied, as they introduce additional supply into the market. Intuitive Machines has been one of the more active space names this year, driven by a growing contract backlog. The company reported first-quarter revenue of $186.7 million in May, with adjusted EBITDA of $2.7 million, and a backlog of approximately $1.1 billion. CEO Steve Altemus emphasized that the company is “executing, growing, and winning new business at record pace.”
The broader space sector also came under pressure Wednesday. Rocket Lab (RKLB) slipped roughly 7.2%, and AST SpaceMobile (ASTS) dropped about 9.6% as space-related names slid amid a broader pullback in risk assets. The weakness coincided with news that SpaceX is preparing for its highly anticipated IPO, with Reuters reporting Wednesday that the company aims to price shares at $135 each, raising $75 billion, and plans to debut on Nasdaq under the ticker “SPCX” on June 12. The pending listing is drawing fresh attention to space stocks while also offering investors a higher-profile alternative to smaller names already trading.
Analysts have been closely tracking Intuitive Machines’ contract awards and backlog. Cantor Fitzgerald analyst Andres Sheppard noted last year that the company’s primary revenue comes from space contracts rather than launch missions. However, the prospectus for the ATM program warns that selling shares—or even the perception that sales could occur—may continue to weigh on the stock price. The company also acknowledged it could require additional external funding as it grows, and that any delays in missions, missed government awards, or sector pullbacks could turn the ATM into a persistent overhang rather than a simple flexibility tool.
Execution will be the next key test. Intuitive Machines has committed to disclosing share sales, net proceeds, and agent fees at least quarterly under the program. For now, traders are watching to see how much fresh capital the growth plan will require and how much dilution shareholders are willing to accept.
