ITT Prices Public Offering of 7 Million Shares, Raising Approximately $1.14 Billion
- Large Financing Scale: ITT Inc. has priced its public offering of 7 million shares at $167 per share, raising approximately $1.14 billion, significantly enhancing the company's capital strength to support future acquisitions.
- Acquisition Funding Support: The proceeds from this offering will fund a portion of the acquisition of SPX FLOW, Inc., and if the acquisition does not proceed, the funds will be allocated for general corporate purposes, ensuring flexibility in diversifying business operations.
- Strong Underwriter Lineup: Goldman Sachs and UBS are acting as lead underwriters, with Barclays and several other prominent financial institutions involved, reflecting strong market confidence in ITT's financing plan, which may enhance the company's reputation among investors.
- Compliance Assurance: The offering is made pursuant to an automatic shelf registration statement filed with the SEC on November 1, 2024, ensuring compliance and providing transparent disclosures to investors, thereby enhancing market trust.
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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.
