Chesapeake Utilities Announces $330M Public Offering Of Its Common Stock
Portfolio Pulse from Benzinga Newsdesk
Chesapeake Utilities Corporation (NYSE:CPK) has announced a public offering of $330 million of its common stock. The company also plans to grant underwriters a 30-day option to purchase up to $49.5 million of additional shares. The net proceeds will be used to partially fund the acquisition of Florida City Gas, expected to close in Q4 2023, and to pay related fees and expenses. Barclays Capital Inc., RBC Capital Markets, LLC and Wells Fargo Securities, LLC are the joint lead book-running managers for the offering.
November 09, 2023 | 2:26 pm
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Chesapeake Utilities is raising funds through a public offering, which may dilute existing shares, potentially leading to a short-term decrease in stock price. However, the funds will be used for the strategic acquisition of Florida City Gas, which could strengthen the company's position in the long run.
Public offerings often lead to share dilution, which can cause a short-term decrease in stock price. However, the funds raised are being used for a strategic acquisition, which could potentially strengthen the company's market position in the long run.
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