Chesapeake Utilities stock sinks toward a 3-year low after $330 million stock offering

Shares of Chesapeake Utilities Corp.
CPK,
-0.36%
slumped 1.0% toward a three-year low in premarket trading Friday, after the after the Delaware-based electric utility announced a $330 million public stock offering. The offering represents 21.3% of the company’s market capitalization of $1.55 billion as of Thursday’s close. The company said its offering of 3.86 million shares priced at $85.50, which represents a 1.7% discount to Thursday’s closing price of $87.02. The stock hasn’t closed as low as $85.50 since Oct. 5, 2020. The company said it would use the proceeds from the offering to help fund the acquisition of Florida City Gas, which is expected to close in the fourth quarter. The stock has dropped 23.2% over the past three months through Thursday, while the Utilities Select Sector SPDR ETF
XLU,
+0.53%
has declined 6.6% and the S&P 500
SPX,
+1.56%
has slipped 2.7%.