H2O America dips after increased $609 mln stock offering

Shares of utility firm H2O America HTO.O down 0.2% at $54.31 early Tues after ~$608.7 mln follow-on offering priced

San Jose, California-based co early Tues announced ~11.5 mln shares at $53 with forward sale component

Offering size increased from $550 mln and priced at 2.6% discount to stock's last sale on Mon

Co sells ~4 mln shares in offering and enters into 2-yr forward sale agreements with bookrunners JP Morgan and Wells Fargo for ~7.5 mln shares

It intends to use net offering proceeds, and upon settlement of the agreements, to finance Quadvest Acquisition and for general corporate purposes, including acquisitions, capex, share repurchases or debt repayment

Co, which provides water and wastewater services in California, Connecticut, Maine and Texas, had ~36.1 mln shares outstanding prior to offering

Stock up ~11% YTD

2 analysts rate stock "buy" and 1 rates "strong buy"; PTs are $59, $61 and $63, per LSEG data