Boeing launches sale of common stock and depositary shares

US aircraft manufacturer Boeing announced on Monday that it is selling 90 million shares of its stock, valued at $5 per share, in a public offering, as well as $5 billion of depositary shares.

Each depositary share represents a one-twentieth interest in a share of newly issued series A mandatory convertible preferred stock, valued at $1 per share of the company.

The company says it will use the net proceeds from the offerings for general corporate purposes, which may include the repayment of debt and additions to working capital.

Boeing expects to grant underwriters a 30-day option to purchase up to an additional 13.5 million shares and $750 million of depositary shares.

The preferred stock is expected to have a liquidation preference of $1,000 per share.

Unless earlier converted, each preferred share will automatically convert, for settlement on or around October 15, 2027, into a variable number of shares, the company said.

Boeing intends to apply to list the depositary shares on the New York Stock Exchange under the symbol "BA.PRA."