NEW YORK (Reuters) – Shares of PG&E Corp fell about 7% on Monday after the power and natural gas company announced that it planned to raise $2.4 billion from investors via a stock offering.
PG&E said it had launched a $1.2 billion common stock offering and a $1.2 billion mandatory convertible preferred stock offering, according to a regulatory filing on Monday.
The company plans to use the proceeds from the offering for general corporate purposes, which includes funding its five-year capital investment plan, the filing said.
PG&E shares fell to as low as $20.08, on track for the lowest close in about a month and biggest daily percentage decline since February 2022.
Last month, PG&E reported revenue of $5.9 billion, up nearly 1% from a year ago, which missed analyst estimates. Its adjusted net income jumped by 54% to $791 million, exceeding Wall Street analyst expectations. It also added an extra $1 billion to its capital investment plan.
PG&E Corp is the parent company of Pacific Gas and Electric Company, one of the largest U.S. utility providers serving about 16 million people across northern and central California.
(Reporting by Chibuike Oguh in New York; Editing by Mark Porter)
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