Pepco Holdings, Inc. (NYSE: POM) is doing fairly well considering the company raised more than $200 through a secondary offering priced at $16.50 per share for 14 million shares.
The underwriting group was rather large, which means that it may havemany analysts’ calls in a month or so. Morgan Stanley, CreditSuisse, and J.P. Morgan were listed as the joint book running manager;and lead managers were Banc of America and Wachovia Capital Markets.
The company is selling the shares and it listed use of proceeds asbeing used to repay short-term debt. Pepco Holdings also granted theunderwriters a 30-day over-allotment option for additional 2.1 millionshares.
Pepco delivers electricity and natural gas to about 1.9 millioncustomers in Delaware, the District of Columbia, Maryland, and NewJersey.
This offering has been on the heels of a large sell-off in this stockand in the electricity sector. Shares are down 4% at $16.82 today,which is still above its $16.60 pricing. Its 52-week trading range is$15.27 to $30.10. Before this offering, the market cap was almost $3.4 billion.
Jon C. Ogg
November 6, 2008
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