$MDU Prices New Share Offering: Dilution for Holders, Deals for Wall Street

MDU Resources Group ($MDU) has priced a public offering of about 10.1 million shares at $19.70 with a forward sale structure. That means more shares are coming into the market over the next couple of years to help fund debt repayment, capital spending, and a wind farm investment.

That’s dilution for existing shareholders, but also fresh fee income and project spending elsewhere in the market.

Winners

Deal banks & capital-markets players

Reason: They earn underwriting fees and trading/hedging revenue from the stock offering and forward sale agreements.

Names:

$WFC (Wells Fargo)

$BAC (Bank of America)

$JPM (JPMorgan Chase)

Utility infrastructure and renewables contractors

Reaso ...