Boring Co. Shares Rise Over 22% in Employee Share Sale
The sale priced shares at around $24 each, the two people said. That’s up from roughly $19 per employee share when Sequoia Capital and Vy Capital led the company’s $675 million Series C, announced in April 2022, which valued it at $5.675 billion. According to one of the people, The Boring Company told shareholders that investors could buy up to $20 million in secondary shares as part of the recent share sales, known as a tender offer.
THE TAKEAWAY
• The Boring Company shares were valued at over 22% more than last year
• Investors could buy up to $20 million in secondary shares in the tender offer
• The Boring Company projects haven’t gotten much traction outside Las Vegas
Tender offers typically allow existing shareholders to sell some of their holdings in a company, without raising new capital for the company. It’s not clear whether the company has issued more shares since the last funding round, which would affect its total valuation.
Representatives of The Boring Company didn’t respond to requests for comment.
The double-digit increase in The Boring Company’s valuation is impressive considering the company has yet demonstrated it has much of a business. Musk founded The Boring Company in 2016 with a goal of solving traffic by building tunnels faster and cheaper than can be accomplished with conventional equipment. The company has created a tunneling machine called Prufrock that it says is designed to bore a mile-long tunnel in a week.
But despite several high-profile negotiations for tunnel projects with cities in California and Florida, the only Boring Company project that has gotten any traction is in Las Vegas, where it dug a 1.7 mile tunnel under the Las Vegas Convention Center. That loop, which shuttles people between three stops using Tesla cars made by the Musk-led electric vehicle maker, opened in 2021.
The company, which is led by longtime Musk associate Steve Davis, has also announced plans to expand the Las Vegas loop to 29 miles and 51 stations.