MP Materials' stock price falls 6.5% after raising $650M through offering.

MP Materials shares declined 6.5% premarket after the rare-earth materials company priced a $650M offering, comprising 11.8 million shares at $55 each. The company also granted underwriters a 30-day option to purchase additional shares.

MP Materials Corp. (NYSE: MP) saw its shares fall 6.5% premarket after the rare-earth materials company priced a $650 million offering. The offering comprises 11.8 million shares at $55 each. Additionally, the company granted underwriters a 30-day option to purchase an additional 15% of its shares [1].

The offering comes a day after MP Materials announced a $500 million deal with Apple Inc. (AAPL) for the production of rare earth magnets, positioning the company as a key supplier for the tech giant. This deal is part of Apple's broader strategy to reduce supply risks [1]. The company also signed a multibillion-dollar agreement with the U.S. Department of Defense last week, aiming to reduce the U.S.'s reliance on Chinese rare earths following export restrictions [1].

MP Materials' stock has surged 275% so far this year, giving the company a market value of $9.57 billion. The offering is expected to close on July 18, 2025. J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC are leading the offering as joint book-running managers [2].

The company intends to use the net proceeds from the offering to fund growth opportunities and for general corporate purposes. Analysts have expressed varying opinions on MP Materials' stock, with a consensus rating of "Moderate Buy" and a consensus price target of $31.28 [3].

References:
[1] https://www.reuters.com/world/china/mp-materials-commences-500-million-public-offering-common-stock-2025-07-16/
[2] https://www.investing.com/news/company-news/mp-materials-launches-500-million-public-stock-offering-93CH-4138474
[3] https://www.marketbeat.com/instant-alerts/mp-materials-nysemp-given-new-5500-price-target-at-canaccord-genuity-group-2025-07-11/