Ormat, the largest “pure play” geothermal company in the US, yesterday announced that it would place 3 million shares on the public market. This will increase Ormat’s outstanding shares to 41.13M and effectively dilutes current shareholders by 7.8%. Unsurprisingly, the stock price dropped yesterday nearly that same percentage and seems to be creeping up incrementally today. This move should raise over $140M (less underwriter’s fees) to be used for general corporate purposes including paying down debt levels, exploration, and new geothermal plant development.

This entry was posted on Wednesday, October 24th, 2007 at 9:31 am and is filed under Business, Geothermal.