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Infrastructure

PPL Raising Capital (PPL)

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By Jon C. Ogg Updated Published
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PPL Corporation (NYSE: PPL) is planning to raise capital via a share sale via a registered underwritten public offering of 9,900,000 shares of common stock.  PPL noted that it plans to use the net proceeds to make capital contributions to its subsidiaries, to repay short-term debt obligations, and for other general corporate purposes.  The proceeds would be nearly $275 million based upon Monday’s closing price and the market capitalization rate is $16 billion.

What is interesting at PPL is that its 5.2% dividend yield puts it above the average dividend yield and the $27.66 closing price on Monday compares to a 52-week trading range of $25.00 to $30.27.

Morgan Stanley and BofA Merrill Lynch are acting as joint book-running managers for the offering.  The underwriters will be granted an option to purchase up to an additional 1,485,000 shares of common stock as a greenshoe option to cover any over-allotments.

Considering the size differential of the company’s market capitalization rate versus the small size of the offering, we would not look for much impact in the shares.

JON C. OGG

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About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.

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