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ST. LOUIS - Ameren Corporation (NYSE: AEE), the St. Louis-based energy company with a market capitalization of $25.7 billion, has announced an underwritten public offering of $520 million of its common stock. According to InvestingPro data, the company’s stock currently trades at $95.41, with analysts maintaining a consensus buy recommendation and projecting profitability for the current fiscal year. The offering involves a forward sale agreement structure, with Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Barclays, and Wells Fargo Securities, LLC serving as joint book-running managers.
The forward sale agreements will enable the underwriters’ affiliates, acting as forward counterparties, to borrow and sell shares to the underwriters, which may then be sold in connection with the forward sale agreements. This move comes as InvestingPro analysis indicates the company’s short-term obligations exceed its liquid assets, with a current ratio of 0.86. In the event that the forward counterparties are unable to borrow and sell the required number of shares, Ameren will directly issue and sell shares to the underwriters.
Additionally, the underwriters are expected to be granted a 30-day option to purchase up to an additional $78 million of Ameren’s common stock under the same terms. Should this option be exercised, Ameren anticipates entering into supplementary forward sale agreements pertaining to these additional shares.
The settlement of these forward sale agreements is scheduled to occur at Ameren’s discretion on or before January 15, 2027. Ameren retains the option to elect either cash or net share settlement for some or all of the shares underlying the forward sale agreements.
Ameren plans to allocate any net proceeds from the settlement of the forward sale agreements towards general corporate purposes, which include the repayment of its short-term debt.
The offering is part of a shelf registration statement filed with the Securities and Exchange Commission. The preliminary prospectus supplement and accompanying prospectus are accessible via the Commission’s website. The offering is contingent upon market and other conditions, and there will be no sale of these securities in any state or jurisdiction where such an offer, solicitation, or sale would be illegal before registration or qualification under the securities laws of such jurisdiction.
Ameren Corporation is a major energy provider, servicing over 2.5 million electric customers and more than 900,000 natural gas customers across a 64,000-square-mile area through its Ameren Missouri and Ameren Illinois rate-regulated utility subsidiaries. The company has demonstrated strong dividend performance, having raised its dividend for 11 consecutive years and maintained payments for 28 years straight, according to InvestingPro analysis. Subscribers can access detailed financial health metrics and additional ProTips in the comprehensive Pro Research Report, available for over 1,400 US stocks including Ameren.
This report is based on a press release statement from Ameren Corporation.
In other recent news, Ameren Corporation reported its first-quarter earnings for 2025, surpassing analysts’ expectations with an earnings per share (EPS) of $1.07, compared to the forecasted $1.05. The company also exceeded revenue expectations, reporting $2.1 billion against the anticipated $1.96 billion. Jefferies has responded to these results by raising its price target for Ameren to $118 from $112, maintaining a Buy rating. The analysts at Jefferies highlighted Ameren’s infrastructure growth plan and regulatory objectives as key factors in their positive outlook. Additionally, Ameren announced quarterly dividends for both its common and preferred stock, demonstrating its ongoing commitment to shareholder returns. The company’s strategic investments in energy infrastructure and renewable resources are noted as contributing to its robust financial performance. Ameren projects a compound annual earnings growth rate of 6-8% from 2025 to 2029, aligning with its long-term growth strategy. These developments underscore Ameren’s efforts to balance stability with growth potential in the utility sector.
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