Stantec Inc. closes $288 million bought deal offering of shares

  • Stock Market News
Stantec Inc. closes $288 million bought deal offering of shares
Credit: © Reuters.

EDMONTON - Stantec (NYSE: STN ) Inc., a prominent player in sustainable design and engineering, announced the successful closure of a public offering that raised $287.53 million. The Edmonton-based company, which is listed on the TSX and NYSE under the ticker STN, issued over 3 million shares at a price of $92.50 per share. This offering included an over-allotment option that was fully exercised by the lead underwriters National Bank Financial Inc. and CIBC Capital Markets, who also acted as co-bookrunners.

The capital raise is part of Stantec's strategic plan to strengthen its financial position by repaying existing debts on its revolving credit facility. This move is expected to enhance the company's leverage for future acquisitions and support its growth endeavors, particularly in areas that align with its commitment to sustainable design and global community impact.

While Stantec is optimistic about leveraging the fresh capital for expansion, it has also issued forward-looking statements to stakeholders, outlining potential economic risks. These include possible economic downturns and changes in infrastructure spending levels, which could impact the company's cash flow projections and its ability to execute strategic initiatives.

The shares offered are not registered under the U.S. Securities Act of 1933 and, as such, are not available for sale within the U.S. market or to U.S. persons, barring specific exemptions from registration rules.

InvestingPro Insights

Stantec Inc .'s recent public offering is a strategic move to bolster its financial standing, and the real-time data from InvestingPro provides a deeper insight into the company's current market performance. With a market capitalization of $8.12 billion, Stantec is trading at a P/E ratio of 32.66, which adjusts to 34.94 when considering the last twelve months as of Q3 2023. Notably, the company has demonstrated a robust revenue growth of 16.77% over the same period, a testament to its expanding operations.

InvestingPro Tips highlight Stantec's impressive track record of consistently increasing earnings per share and maintaining dividend payments for 12 consecutive years. These factors, coupled with the company's moderate level of debt and a PEG Ratio of 0.45, suggest a stable financial outlook that may appeal to investors looking for sustainable growth.

For those seeking more comprehensive analysis, InvestingPro offers an additional 14 tips for Stantec, which can be explored with a subscription. Currently, a special Cyber Monday sale is available, offering up to 55% off on subscriptions. To further sweeten the deal, use the coupon code sfy23 to get an additional 10% off a 2-year InvestingPro+ subscription. With these insights and the potential for future acquisitions, Stantec's investors have valuable data points to consider when assessing the company's prospects.

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