Joby Aviation Announces Upsized Public Offerings, Positions Itself for Growth

Joby Aviation Inc. (NYSE: JOBY), a pioneer in the development of electric air taxis, has made significant strides in its funding strategy, announcing the pricing of concurrent public offerings that aim to bolster its financial foundation as it prepares for commercial operations. This bold move involves an upsized offering of $600 million in convertible senior notes and over 52 million shares of common stock, signaling Joby’s ambitious plans for expansion.

Joby's offering of $600 million aggregate principal amount of 0.75% convertible senior notes due in 2032 represents a strategic financing maneuver. The notes will accrue interest at an annual rate of 0.75%, with interest payments scheduled semi-annually starting August 15, 2026. Notably, the initial conversion price is set at approximately $14.19 per share, which reflects a premium of about 25% over the public offering price in the common stock offering.

These notes will not be contingent on the simultaneous common stock offering, allowing Joby flexibility in managing its capital structure. Furthermore, the company has granted underwriters a 30-day option to purchase additional notes totaling up to $90 million to cover over-allotments.

In tandem with the notes, Joby is offering 52,863,437 shares of its common stock at a price of $11.35 per share, with the potential for an additional 7,929,515 shares if the underwriters exercise their over-allotment option. This offering is expected to generate approximately $576 million in net proceeds, which will contribute to Joby’s overarching growth strategy.

Additionally, a delta offering facilitated by Morgan Stanley, involving 5,286,343 shares of common stock borrowed from third parties, aims to support hedging transactions for investors in the notes. This offering adds another layer of strategic financial management, allowing Joby to effectively navigate the complexities of equity and convertible securities.

Joby anticipates utilizing the proceeds from these offerings towards funding critical areas, including:

The company has earmarked approximately $55 million from the note offering to enter capped call transactions, further enhancing its capital management strategy.

Joby's involvement in capped call transactions is designed to mitigate potential dilution of its common stock upon any conversion of the notes. The cap price for these transactions is set at $22.70 per share, a significant premium that positions Joby to manage its equity effectively as it navigates future market conditions.

This dual offering underscores Joby Aviation’s commitment to securing the necessary capital to support its growth trajectory in the burgeoning electric air taxi market. As the company moves closer to commercial operations, the strategic financial decisions made today will play a pivotal role in shaping its future.

Morgan Stanley, Allen & Company LLC, and BofA Securities are acting as joint book-running managers for the offerings, with a roster of additional co-managers supporting the execution of these critical financial initiatives.

With these offerings scheduled to settle on February 2, 2026, Joby Aviation is poised to leverage this influx of capital to accelerate its development efforts and establish itself as a key player in the future of urban air mobility.