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Investing.com -- Shares of Excelerate Energy , Inc. (NYSE:EE) tumbled over 6% in pre-market trading after the company announced the pricing of an upsized public offering of its Class A common stock. The offering was increased from the previously announced $150 million to approximately $184.3 million, which represents the gross proceeds before underwriting discounts and estimated offering expenses.
The company’s stock closed at $28.68 on Monday but was trading at $26.88 pre-open following the pricing of the offering at $26.50 per share. Excelerate Energy has also granted the underwriters a 30-day option to purchase up to an additional 1,043,478 shares at the public offering price minus the underwriting discounts and commissions.
The proceeds from the offering, along with the expected incurrence of approximately $650 million of senior indebtedness and cash on hand, are intended to fund the acquisition of New Fortress Energy (NASDAQ:NFE), Inc.’s business in Jamaica, which is valued at $1.055 billion, subject to adjustments. The offering’s closing, expected around April 2, 2025, is not contingent upon the completion of the pending acquisition.
Several financial institutions are involved in the transaction, with Barclays (LON:BARC) and Morgan Stanley (NYSE:MS) serving as lead book-running managers. Credit Agricole (OTC:CRARY) CIB, DNB Markets, Jefferies, and Wells Fargo (NYSE:WFC) Securities are acting as joint book-running managers, while BNP PARIBAS and Raymond (NSE:RYMD) James are co-managers.
Investors reacted to the news by selling off shares, likely due to concerns about the dilution of existing shares and the potential impact on the company’s financials. The acquisition of New Fortress Energy’s business in Jamaica is a significant move for Excelerate Energy, aiming to expand its operations and market presence. However, the immediate market response reflects investor caution as the company takes on additional debt and increases its share count.
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