Sempra Energy ( SRE ) announced that
its subsidiary Infraestructura Energetica Nova, S.A.B. de C.V. or
IEnova has priced its private offering of about 91.04 million
shares of Class II, Single Series, common stock at an initial
offering price of 34.00 Mexican pesos per share, or about
US$2.75.ATMOS ENERGY CP (ATO): Free Stock Analysis
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Simultaneously, IEnova also priced its initial public offering
registered in Mexico of about 98.62 million shares of common stock
at the same initial offering price. Settlement of the offerings is
expected to occur on Mar 27, 2013.
The initial purchasers in the private offering and the
underwriters in the Mexican public offering have been granted a
30-day option to purchase up to an additional 28.45 million shares
of common stock at the initial offering price, less the
underwriting discount, to cover overallotments, if any.
The aggregate shares of common stock to be sold in the offerings
represent about 16.85% of IEnova's outstanding ownership interest,
and approximately 18.9% of IEnova's outstanding ownership interest
if the 30-day overallotment option is exercised in full.
The company estimates the net proceeds of the offerings to be
about 6.1 billion Mexican pesos or US$496 million, after deducting
underwriting discounts and commissions and estimated offering
expenses payable by IEnova, and prior to any exercise of the 30-day
IEnova expects to use the net proceeds of the offerings primarily
for general corporate purposes, including the funding of its
current investments and ongoing expansion plans.
Based in San Diego, California, Sempra Energy, along with its
subsidiaries, engages in the development of energy infrastructure,
operation of utilities, and provision of energy-related products
and services to its consumers. With a market cap of $18.30 billion,
the company has 17,483 employees.
Sempra Energy ended 2012 on a strong note and remains on track to
achieve compound annual earnings growth of 6% to 8%. The company
has doubled its renewable energy generation portfolio and its
success to win a bid to construct and own a $1 billion of natural
gas pipeline in Mexico will surely help its cause.
The board of directors recently approved a 4.8% increase in the
quarterly dividend rate to 63 cents. The increase reflects the
underlying strength of the business and management's inclination to
improve shareholder value. Sempra Energy currently has a Zacks Rank
Besides Sempra Energy, other stocks in the industry that are
currently performing well include the Zacks Rank #1 (Strong Buy)
stock The Laclede Group Inc. ( LG ), and Zacks Rank #2
(Buy) stocks Atmos Energy Corporation ( ATO ) and
Chesapeake Utilities Corporation ( CPK ).