ITT Initiates Stock Offering
Stock Offering: ITT has launched an offering of 7 million shares of its common stock, with an option for underwriters to purchase an additional 1.05 million shares within 30 days.
Use of Proceeds: The net proceeds from the offering will primarily fund the acquisition of SPX FLOW, valued at $4.775 billion, but will be redirected for general corporate purposes if the acquisition does not proceed.
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ITT Increases Dividend for 14th Consecutive Year While Retaining 77% of Earnings
Dividend Safety and Growth: ITT maintains a low payout ratio of 22.9% and has a strong free cash flow coverage of 4.2 times its dividend obligations, allowing for consistent dividend growth at a 19% annual rate over the past five years.
Financial Stability: The company has a conservative debt to equity ratio of 0.41x and an impressive interest coverage ratio exceeding 22 times, indicating strong financial health and the ability to service its debt comfortably.
Dividend History: ITT has increased its dividend for over 14 consecutive years, demonstrating a commitment to returning value to shareholders, even during economic downturns like the 2020 pandemic.
Investment Consideration: While ITT offers a modest dividend yield of 0.76%, it is more suitable for investors focused on long-term dividend growth rather than immediate high yields.
ITT Announces Public Offering of 7 Million Shares at Set Price
Public Offering Details: ITT Inc. has priced its public offering of 7 million shares at $167 each, aiming for net proceeds of approximately $1.14 billion.
Use of Proceeds: The funds will primarily support the acquisition of SPX FLOW, Inc., with any unused proceeds allocated for general corporate purposes.
Underwriter Option: The company has granted underwriters a 30-day option to purchase an additional 1,050,000 shares at the same price of $167 per share.
Closing Date: The offering is expected to close on December 10.
