pennon

Pennon raises £550 million as shares tumble following dividend reset

💧 Pennon Group, owner of South West Water and SES Water, launched a roughly £550 million rights issue at 250 pence per share, a 44.7% discount to the previous closing price. The offering is fully underwritten by Barclays and Morgan Stanley.

📉 The company also reduced its FY2026/27 total dividend to around £125 million. After dilution, dividend per share is expected to fall by about 30% to roughly 18 pence.

🏗️ The new capital will support around £3.6 billion of investment through AMP8 to March 2030, about £1 billion above the previous plan.

📊 Pennon shares fell more than 22% to around 350.8 pence, their lowest level since 2011. The price also sits about 9.5% below TERP, suggesting investors are pricing in additional risks around earnings, dividends and regulatory recovery of investment.

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