BUZZ-Utility MDU Resources drops on $200 mln equity offering
MDU Resources shares fell 3.3% premarket after announcing a $200 million equity offering with a forward sale component. The company plans to use proceeds for general purposes, including debt repayment and acquisitions. MDU has entered into 2-year forward sale agreements with Wells Fargo, BofA, and JP Morgan. The structure allows MDU to lock in the current stock price and delay new share issuance until funds are needed, avoiding immediate dilution. Analysts rate shares as "strong buy" and "hold," with a median price target of $21.
EMDU Resources’ (MDU.N) shares down 3.3% at $19.57 premarket after $200 mln follow-on priced with forward sale component
Bismarck, North Dakota-based MDU early Thurs ~10.2 mln shares at $19.70, a 2.7% discount to last close
Co entered into 2-year forward sale agreements with bookrunners Wells Fargo, BofA and JP Morgan
Upon settlement of such agreements, it expects to use net proceeds for general purposes, including debt repayment and acquisitions, among other purposes
MDU has ~204.4 mln shares outstanding as of Nov 25, per the , for ~$4.1 bln market cap
A structure allows MDU to lock in current stock price and delays new share issuance and garnering proceeds until the utility needs the funds, thus avoiding immediate dilution
Through Weds close, MDU shares up 25% over the past three months, putting them up 12% in 2025
3 analysts rate shares “strong buy” and 2 rate “hold”; their median PT is $21, per LSEG data (Lance Tupper is a Reuters market analyst. The views expressed are his own)
