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Bullboard - Stock Discussion Forum Enbridge Inc T.ENB

Alternate Symbol(s):  ENB | T.ENB.PF.A | T.ENB.PF.C | T.ENB.PF.E | ENBOF | ENBFF | T.ENB.PF.G | T.ENB.PF.U | EBBNF | T.ENB.PF.V | EBGEF | T.ENB.PR.A | ENBGF | EBRGF | T.ENB.PR.B | T.ENB.PR.D | EBRZF | T.ENB.PR.F | ENBHF | T.ENB.PR.H | T.ENB.PR.J | ENBRF | ENNPF | T.ENB.PR.N | T.ENB.PR.P | ENBMF | T.ENB.PR.T | T.ENB.PR.V | EBBGF | ENBNF | T.ENB.PR.Y | T.ENB.PF.K | T.ENB.PR.G | T.ENB.PR.I | T.ENB.PR.Z

Enbridge Inc. is an energy transportation and distribution company. The Company operates through five business segments: Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation, and Energy Services. Liquids Pipelines consists of pipelines and terminals in Canada and the United States that transport and export various grades of crude oil and... see more

TSX:ENB - Post Discussion

Enbridge Inc > ENB announces a $2.75 billion equity "at the market" raise
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Post by Obscure1 on May 15, 2024 8:13pm

ENB announces a $2.75 billion equity "at the market" raise

The raise equates to 55 million shares based upon $50 per share.  To put that in perspective, it represents about 5 days of trades on the open market which proably means about 10 weeks of actual trading once you back out 10x of algo trading that grossly distorts the real volume. 

What does that mean for the ENB share price?

We will likely see a short term dip in the ENB share price.  If I remember correctly, the ENB share price immediately dropped about $3 per share when the company did a similar raise at the time the Natgas Distribution deal with Dominion was announced.  That raise was for $4.6 billion ($4 billion plus a 15% greenshoe that was fully subscribed).

I think the price drop will be smaller this time around due to:

* the size of this raise is smaller (I expect it will be oversubscribed as well so it will top $3 billion)

* I expect the market will see the funding as the last step in finalizing the funding shortfall for the Dominion acquistion

* The timing of this deal is likely a strong indicator that ENB feels confident that the 2nd and 3rd legs of the Dominion asset acquistion will close and probably pretty soon. I expect the market will see that in a bullish light.  

Very few if any of us are likely to get a piece of the raise.  If the ENB share price does dip, I think it would be a buying opportunity.
Comment by cttglvr on May 15, 2024 9:06pm
What are the advantages and detriments to doing an ATM raise versus just doing 1 bought offering of the required shares? Is the ATM issue over weeks a better way to raise the funds?
Comment by Obscure1 on May 15, 2024 10:00pm
Best guess is that a BMO led group has already agreed to a bought deal.  My guess is 3% below the close so maybe $49 per share.  If it doesn't get announced right away, it will be in the best interests of the dealers to drive the price down and then announce a bought deal at an even lower price.   The "at the market" announcement saves time and money for legals ...more  
Comment by ecolo101 on May 15, 2024 10:24pm
We could easily see 47-48$ ish level with frustration about their practices.  Doing this just when the momentum was right. Ouch. I still remember the last one. So we will have to wait and see when we could get back above $50. dyodd glta
Comment by Dogsbreakfast4U on May 16, 2024 9:51am
Got in in September last year at 44.70 during the last treasury offering. Sold at 50.41 this morning. The uncertainty surrounding the latest possible share dilution is enough for me take a profit and watch what happens. I prefer PPL right now.
Comment by ecolo101 on May 16, 2024 12:10pm
Just did the same for 14,500 shares see you maybe down the road but more shares means dilution for bagholders. on top they will have to get in operation with electricity generation which they don't know much about.  And make changes to increase margin. This is not a done deal yet. Also cultural changes.  Probably that banking will support the share price for a while until they ...more  
Comment by ecolo101 on May 15, 2024 9:50pm
Here we go again, this explain why we did not break the $52 and holding... a new baseline = $50 ish yeah  they always surprise their shareholders  nothing to add, we are going down on opening tomorrow. At least we got the dividend  glta