Arbe Robotics Ltd. Announces $16 million Underwritten Registered Direct Offering
Rhea-AI Summary
Arbe Robotics (NASDAQ: ARBE) priced an underwritten registered direct offering of 11,500,000 ordinary shares at $1.40 per share, with estimated gross proceeds of approximately $16.1 million before fees and expenses. The company expects to grant underwriters a 30-day option to purchase up to an additional 1,725,000 shares at the public offering price less discounts and commissions. Proceeds are intended for working capital and general corporate purposes. Canaccord Genuity is sole bookrunner; Roth Capital Partners and WestPark Capital are co-managers. The securities are offered under a Form F-3 registration statement declared effective by the SEC.
Positive
- Raised capital via 11,500,000 shares at $1.40
- Estimated gross proceeds of $16.1 million to support operations
- Underwriters granted a 30-day overallotment option for up to 1,725,000 shares
Negative
- Issuance of 11,500,000 shares will dilute existing shareholders’ ownership
- Potential additional dilution if the underwriters exercise the 1,725,000-share overallotment option
Key Figures
Market Reality Check
Peers on Argus
ARBE’s -7.1% move contrasts with mixed peers: REKR -3.5%, AISP -4.83%, ZENA -7.14% versus HPAI +1.86% and BKKT +1.47%, pointing to stock-specific financing impact.
Previous Offering Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 07 | Registered direct offering | Negative | -6.0% | Announced $29M underwritten registered direct equity financing at $3.20 per share. |
| Nov 04 | Public equity offering | Negative | -0.1% | Closed $15M public share sale with additional warrant upside potential of $34.4M. |
| Nov 01 | Public offering pricing | Negative | -1.6% | Priced $49M public offering structure with shares plus Tranche A and B warrants. |
| Oct 31 | Proposed public offering | Negative | -1.6% | Proposed new public share and warrant offering for working capital needs. |
Prior equity and warrant offerings for ARBE have usually been followed by modest single-digit percentage declines on the next trading day.
Over the past year, Arbe has repeatedly accessed equity markets, including a $49 million public offering structure in October–November 2024 and a $29 million underwritten registered direct offering on Jan 7, 2025. These deals featured ordinary shares and warrants, with proceeds earmarked for working capital and general corporate purposes. Price reactions after these offerings were generally mild, with single‑digit percentage declines. Today’s underwritten registered direct equity raise continues this pattern of using public markets to fund operations.
Historical Comparison
In prior offering-related announcements, ARBE’s average one-day move was 2.36%, while today’s -7.1% reaction to another equity raise appears notably more negative.
The company has moved from proposed and structured public offerings with warrants in late 2024 to repeated underwritten registered direct share offerings, consistently funding working capital.
Regulatory & Risk Context
The active Form F-3 filed on Jan 20, 2026 registers 6,044,071 ordinary shares underlying debentures with principal of $18 million. These debentures mature on May 30, 2028 and are convertible at NIS 9.53 (~$2.95) per share, so any conversion would add equity and dilute existing holders while giving debenture investors equity exposure at a premium price point. This convertible overhang adds to dilution from the new equity offering.
Market Pulse Summary
This announcement details an underwritten registered direct sale of 11,500,000 shares at $1.40, targeting gross proceeds of $16.1 million for working capital and general corporate purposes, with an added 30‑day option for 1,725,000 more shares. It follows other recent financing steps, including convertible debentures registered on a Form F‑3 for $18 million. Investors may focus on cumulative dilution, how efficiently the new capital is deployed, and any future use of the registered debenture conversion capacity.
Key Terms
underwritten offering financial
registered direct offering financial
prospectus supplement regulatory
registration statement regulatory
form f-3 regulatory
bookrunner financial
AI-generated analysis. Not financial advice.
TEL AVIV, ISRAEL, Jan. 26, 2026 (GLOBE NEWSWIRE) -- Arbe Robotics Ltd. (NASDAQ: ARBE), (TASE: ARBE) (“Arbe” or the “Company”), a global leader in Perception Radar Solutions, today announced that it has priced an underwritten offering of 11,500,000 ordinary shares at a purchase price of
Arbe estimates the gross proceeds from this offering to be approximately
Canaccord Genuity is acting as sole bookrunner for the offering. Roth Capital Partners and WestPark Capital are acting as co-managers for the offering.
The securities described above are being offered pursuant to a registration statement on Form F-3 (File No. 333-287805), originally filed on June 5, 2025, with the Securities and Exchange Commission (the “SEC”) and declared effective by the SEC on June 13, 2025. The offering is being made only by means of a prospectus and a prospectus supplement which forms a part of the effective registration statement relating to the offering. A final prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC. Electronic copies of the final prospectus, when available, may be obtained on the SEC’s website at http://www.sec.gov and may also be obtained, when available, by contacting Canaccord Genuity LLC, Attn: Syndication Department, 1 Post Office Square, 30th Floor, Boston, MA 02109, or by email at prospectus@cgf.com.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.
About Arbe Robotics, Ltd.
Arbe (Nasdaq: ARBE), a global leader in ultra-high-resolution radar solutions, is driving a radar revolution. Its cutting-edge radar chipset delivers up to 100 times more detail than other radar systems on the market, empowering automakers and radar Tier-1s to develop safe driving systems that scale from ADAS to hands-free, eyes-off capabilities and up to full vehicle autonomy. Arbe's technology addresses the most critical use cases by delivering real-time, 4-dimensional imaging that enables the perception stack with information such as precise mapping of drivable free space in highway and urban environments across all weather and lighting conditions. With its transformative impact across passenger, commercial, and industrial vehicle segments, as well as other advanced safety applications, Arbe is redefining the role of radar in next-generation mobility.
Headquartered in Tel Aviv, Israel, the company also operates offices in the United States, Germany, and China. For more information, visit https://arberobotics.com/
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, both as amended by the Private Securities Litigation Reform Act of 1995. The words “expect,” “believe,” “estimate,” “intend,” “plan,” “anticipate,” “may,” “should,” “strategy,” “future,” “will,” “project,” “potential” and similar expressions indicate forward-looking statements. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. These risks and uncertainties include, but are not limited to, the timing and completion of the offering, the grant to the underwriters of the option to purchase additional shares in the offering, the intended use of proceeds from the offering, the ability of Arbe to achieve certain milestone events, Arbe’s perception radar performing as anticipated by Arbe, any demonstration of Arbe’s perception radar being met in actual traffic conditions, market acceptance of Arbe’s perception radar, Arbe meeting the conditions to the release of the net proceeds of its convertible note offering from escrow and meeting the covenants, the effect on the Israeli economy generally and on Arbe’s business resulting from the terrorism and the hostilities in Israel and with its neighboring countries including the effects of the continuing war with Hamas and any further intensification of hostilities with others, including Iran and Hezbollah, and the effect of the call-up of a significant portion of Israel’s working population, including Arbe’s employees, the effect of any potential boycott both of Israeli products and business and of stocks in Israeli companies, the effect of any downgrading of the Israeli economy and the effect of changes in the exchange rate between the US dollar and the Israeli shekel, and the risk and uncertainties described in “Cautionary Note Regarding Forward-Looking Statements,” “Item 3. Key Information – D. Risk Factors” and “Item 5. Operating and Financial Review and Prospects” and in the Company’s Annual Report on Form 20-F for the year ended December 31, 2024, which was filed with the Securities and Exchange Commission (the “SEC”) on March 28, 2025, as well as other documents filed by the Company with the SEC. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements relate only to the date they were made, and the Company does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made except as required by law or applicable regulation.
Information contained on, or that can be accessed through, Arbe’s website or any other website or any social media is expressly not incorporated by reference into and is not a part of this press release.
Investor Relations:
Ehud Helft & Kenny Green
EK Global Investor Relations
arbe@ekgir.com
+1 212 378 8040
FAQ
How many shares did Arbe Robotics (ARBE) offer and at what price?
What are the estimated gross proceeds from the ARBE offering?
Does the ARBE offering include an overallotment option and how large is it?
What will Arbe Robotics (ARBE) use the net proceeds from the offering for?
Who is managing the ARBE underwritten offering?
When is the ARBE offering expected to close?
