Why T-Mobile (TMUS) Is Losing Ground Tuesday

NEW YORK (TheStreet) -- T-Mobile (TMUS) shares have skidded 3.1% to $26.14 after announcing it would sell 66.15 million shares, representing around 9% of total shares outstanding.

In a statement, the company said it expects to use the approximate $1.72 billion in capital raised for "general corporate purposes, including capital investments, enhancing its financial flexibility and opportunistically acquiring additional spectrum."

T-Mobile is expected to bid for additional spectrum holdings at a government auction in 2014. Increased spectrum would allow T-Mobile to boost network coverage and capacity to offer a faster and more reliable service.

The fourth-largest mobile service provider has been pushing to gain ground recently. In the third quarter, the company saw strong subscriber growth and 9% higher revenue, as a result of its successful 'Un-carrier' strategy which pitted it as a customer-friendly alternative to rivals Verizon (VZ) and AT&T (T).

As part of the offering, underwriters Morgan Stanley, Goldman Sachs, JPMorgan, Credit Suisse and Deutsche Bank have the option to buy an additional 6.62 million shares.

--Written by Keris Alison Lahiff.

More from Markets

3 Things Investors Must Know for Monday

3 Things Investors Must Know for Monday

Street Stats: The Mid-Term Elections May Be a Rollercoaster Ride for Investors

Street Stats: The Mid-Term Elections May Be a Rollercoaster Ride for Investors

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric