PG&E shares fall after launching $2.4 billion equity capital raise

NEW YORK (Reuters) – Shares of PG&E (NYSE:) Corp fell about 7% on Monday after the power and company announced that it planned to raise $2.4 billion from investors via a stock offering.

PG&E said it had launched a $1.2 billion common stock offering and a $1.2 billion mandatory convertible preferred stock offering, according to a regulatory filing on Monday.

The company plans to use the proceeds from the offering for general corporate purposes, which includes funding its five-year capital investment plan, the filing said.

PG&E shares fell to as low as $20.08, on track for the lowest close in about a month and biggest daily percentage decline since February 2022.

Last month, PG&E reported revenue of $5.9 billion, up nearly 1% from a year ago, which missed analyst estimates. Its adjusted net income jumped by 54% to $791 million, exceeding Wall Street analyst expectations. It also added an extra $1 billion to its capital investment plan.

PG&E Corp is the parent company of Pacific Gas and Electric Company, one of the largest U.S. utility providers serving about 16 million people across northern and central California.