Sempra (NYSE: SRE), the San Diego-based energy company, has disclosed the pricing for its public offering of 17,142,858 common stock shares. The deal is expected to close by Friday, November 10, 2023, subject to standard closing conditions. Underwriters have been given the option to procure up to an additional 2,571,428 shares from Sempra to fulfill over-allotment requirements.
Morgan Stanley and Citigroup are acting as joint bookrunners for this transaction. In tandem with the public offering, Sempra has entered into forward sale agreements with these banks for an equivalent number of shares. These forward sellers will acquire these shares from third parties and sell them back to the underwriters for re-offering in the market.
While Sempra will not receive any earnings from this sale, it has committed to a physical settlement of equivalent shares by December 31, 2024. The cash proceeds from this transaction will align with the forward sale price per share. The energy company plans to channel the net proceeds towards working capital, general corporate expenses, and partially funding its long-term capital plan.
InvestingPro Insights
Sempra's public offering of common stock is a significant move, and understanding the company's financial health and performance can provide valuable context. According to InvestingPro data, as of Q3 2023, Sempra has a market cap of $44.85 billion and a P/E ratio of 16.64. The company's revenue for the last twelve months stood at $16.68 billion, with a revenue growth of 12.52%. However, it's worth noting that their quarterly revenue growth declined by 7.82%.
InvestingPro Tips highlight that Sempra has consistently increased its earnings per share and has raised its dividend for 12 consecutive years. This suggests a stable financial position and a commitment to return capital to shareholders. On the other hand, it's important to note that three analysts have revised their earnings downwards for the upcoming period, indicating potential headwinds.
InvestingPro offers numerous additional tips and real-time data metrics to help investors make more informed decisions. By leveraging these insights, investors can gain a deeper understanding of a company's financial health and market position.
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