Artesian Resources Corporation announced that it priced a commitment underwritten public offering of 695,650 shares of the company’s Class A Non-Voting Common Stock at a purchase price of $50 per share or about $35 million.
The offering is expected to close on or about May 23, subject to customary closing conditions. The company has also granted the underwriter a 30-day option to purchase from Artesian up to an additional 104,348 shares of Class A Non-Voting Common Stock at the public offering price, less the underwriting discount. Janney Montgomery Scott LLC is acting as the sole book-running manager.
Artesian currently intends to use the net proceeds of the offering for general corporate purposes, including its capital investment program and repayment of debt.
Artesian shares were trading at around $49, down from a 52-week high of more than $60.
The publicly traded company is controlled by the founding families, with investors able to buy nonvoting shares.
Artesian Resources Corporation operates as a holding company of wholly-owned subsidiaries offering water and wastewater services, and related business services, on the Delmarva Peninsula. Artesian Water Company, the principal subsidiary, is the oldest water utility on the Delmarva Peninsula and has been providing water service since 1905. Artesian supplies 8.7 billion gallons of water a year through 1,442 miles of water main to more than a third of Delawareans.
Artesian operates throughout Delaware and Cecil County, MD. Its territory includes a large portion of New Castle County. Artesian is based near Newark.