Icahn Enterprises Shares Plummet After $400 Million Offering Announcement

Shares of Icahn Enterprises, led by billionaire investor Carl Icahn, fell to a more than 20-year low on Monday. This decline follows the company’s announcement to sell up to $400 million in depository units through an “at-the-market” offering program.

Stock Performance and Market Reaction:

Icahn Enterprises’ stock price dropped as much as 14.3%, reaching a low of $13.62—the weakest level since November 2003.

The closing price of $14.07 marked an 11.5% decline and represented the lowest share value since February 2004. Approximately 6.8 million shares changed hands during the trading session, making it the busiest trading day in over a year.

Plans for Proceeds from the Offering:

In a regulatory filing, Icahn Enterprises stated that it intends to use the net proceeds from the offering primarily for potential acquisitions and other company purposes. However, the company did not provide details on specific plans or timelines.

Last week, Carl Icahn and his firm settled charges with U.S. regulators related to the failure to disclose the pledging of most of the firm’s securities for billions in personal margin loans. As part of the settlement, both parties agreed to pay $2 million in penalties.

Ongoing Conflict with Short-Sellers:

Icahn Enterprises continues to face significant scrutiny from short-seller Hindenburg Research. The firm previously accused Icahn of operating a “Ponzi-like” scheme to pay dividends through inflated valuations of its holdings, raising concerns about Icahn’s margin borrowing practices.

As the sales agent for the share sale program, Jefferies is currently the only brokerage covering Icahn Enterprises. According to LSEG data, Jefferies has rated the stock a “buy” with a price target of $25.