PG&E to Launch $2.4 Billion Stock Offering Amidst Declining Shares

PG&E Corp (NYSE: PCG) experienced a significant decline in its stock price on Monday, dropping approximately 7% after announcing its intention to issue $2.4 billion in new stock. The company initiated the process by filing for a $1.2 billion common stock issuance and a $1.2 billion mandatory convertible preferred stock issuance. The funds raised from these issuances will be used for general corporate purposes, including financing PG&E's five-year capital investment strategy, which was detailed in a regulatory filing made public on Monday.

Following the announcement, PG&E shares fell to $20.08. The stock is heading towards its lowest closing price in nearly a month and is facing its largest single-day percentage drop since February 2022. This fundraising move comes after PG&E's financial report announced last month, which revealed the company's revenue at $5.9 billion. This figure represents a slight increase of about 1% compared to the previous year, but falls short of analyst expectations.

However, the company's adjusted net income saw a significant increase, rising 54% to reach $791 million, surpassing Wall Street analysts' expectations. Additionally, PG&E raised its capital investment plan by an additional $1 billion. San Francisco-based PG&E Corp is the parent company of Pacific Gas and Electric Company. As one of the largest utility providers in the U.S., it serves approximately 16 million people in Northern and Central California.