Ameren edges down after $522 mln stock offering priced

Ameren

13/05/2025 13:06

**  Shares of utility co Ameren Corp AEE.N down 0.6% at $94.88 on light premarket volume  after overnight follow-on priced

    ** St. Louis, Missouri-based Ameren late Mon announced ~5.6 mln shares at $94 for total deal size of ~$521.7 mln as part of forward sale

    ** Offering priced at 1.5% discount to stock's last sale

    ** Co entered into forward sale agreements with jt bookrunners Goldman Sachs, JP Morgan, Barclays and Wells Fargo

      ** Upon settlement settlement of the agreements, to occur on or prior to Jan 15, 2027, co intends to use net proceeds for general purposes, including to repay short-term debt

** Co has

        ~270.3 mln shares o
        utstanding for roughly $26 bln market cap

      ** Forward sale structure allows the utility to lock in current prices and delays new share issuance and collecting proceeds until Ameren needs the funds, thereby avoiding immediate shareholder dilution

      ** Last week, utilities ONE Gas OGS.N and IDACORP IDA.N completed equity offerings with forward sale components. In Mar, peers

      AEP AEP.O and Entergy ETR.N availed themselves of forward sales format

    ** Through Mon, AEE shares up ~7% YTD compared to 5% gain in S&P 500 Utilities index .SPLRCU

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))