Carnival Shares Plunged About 10% in Premarket Trading

Tiger Newspress2022-07-21

Carnival shares plunged about 10% in premarket trading following an announcement that the cruise operator intends to sell at least $1 billion in fresh stock.

The company announced that it intends to sell $1 billion in new shares, but underwriter Goldman Sachs [s:gs] could sell up to $150 million more. The company said it intends to use the proceeds for "general corporate purposes, which could include addressing 2023 debt maturities."

Carnival shares rose 7.1% in regular trading Wednesday after the Centers for Disease Control and Prevention indicated that cruise operators and travelers will now be responsible for COVID-19 mitigation and safety.Carnival shares have fallen 44.9% so far this year, as the S&P 500 index has declined 17.4%.

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