PG&E Corp (NYSE:PCG) experienced a significant drop in share price on Monday, declining approximately 7% following the announcement of its intent to raise $2.4 billion through new stock offerings.
The company has initiated the process by filing for a $1.2 billion common stock offering alongside a $1.2 billion mandatory convertible preferred stock offering.
The funds raised from these offerings are earmarked for general corporate uses, which encompass the financing of PG&E's five-year capital investment strategy. This plan is detailed in the regulatory filing that was made public on Monday.
In the wake of the announcement, PG&E shares plunged to a low of $20.08. The company's stock is on a trajectory towards its lowest closing price in roughly a month and is facing its steepest one-day percentage drop since February 2022.
The fundraising move comes after PG&E's financial report last month, which disclosed a revenue of $5.9 billion. This figure represents a slight increase of nearly 1% from the previous year, albeit falling short of analyst projections.
However, the company's adjusted net income saw a significant rise, jumping 54% to reach $791 million, which surpassed the expectations of Wall Street analysts. Additionally, PG&E has increased its capital investment plan by an additional $1 billion.
PG&E Corp, headquartered in San Francisco, is the parent entity of Pacific Gas and Electric Company. It stands as one of the largest utility providers in the United States, delivering services to approximately 16 million individuals in northern and central California.
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