Diversified Energy Company PLC (LSE:DEC, NYSE:DEC) said it aims to raise $123.3 million with shares priced at $14.50 apiece for US investors to help pay for its planned acquisition of Maverick Natural Resources.
Having flagged the underwritten public offering of 8.5 million ordinary shares on Wednesday, the energy company confirmed pricing on Thursday and said the fundraising is expected to settle on Friday. The price compares to the last close price in New York of $15.01.
Underwriters Citigroup and Mizuho also have a 30-day option to purchase up to an additional 850,000 shares at a discount.
DEC said it intends to use the net proceeds from the offering to pay for a portion of the $1.28 billion Maverick acquisition, or if the acquisition does not go ahead to repay debt and for general corporate purposes.
The acquisition is expected to increase the company's revenue base by some 95% from a production profile increased to around 200,000 barrels of oil equivalent per day from Maverick's assets in the Western Anadarko and Permian basins.