Pennon Group (PNN): Rights issue

This situation live

PNN Pennon Group

£1,747m · 335.0p · −18% since the first step

7 Oct 2026 · Launched, fully underwritten · +3% since c.£550m fully underwritten rights issue and rebased dividend - supporting c.£1 billion1 of additional investment to drive improved outcomes for customers and communities

7 Oct 2026 · Terms set; subscription period opens 12 October · +3% since Today the Board of Pennon announces a proposed capital raise of approximately £550 million by way of a fully underwritten Rights Issue of 220,257,997 New Ordinary Shares at 250 pence per New Ordinary

Dilutive fundraise

Rights issue

Terms set; subscription period opens 12 October

OCT27 Next: Results of the rights issue announced in 2 days

Every step · 2

7 Oct 2026 Launched, fully underwritten – c.£550m fully underwritten rights issue and rebased dividend - supporting c.£1 billion1 of additional investment to drive improved outcomes for customers... ↗
7 Oct 2026 Terms set; subscription period opens 12 October – Today the Board of Pennon announces a proposed capital raise of approximately £550 million by way of a fully underwritten Rights Issue of 220,257,997 New... ↗

What is happening

Pennon Group: Rights issue – Terms set; subscription period opens 12 October. ['Terms set; subscription period opens 12 October']

In short: On 7 October 2026 Pennon launched a c.£550m fully underwritten rights issue to fund the enlarged AMP8 water investment. Terms are now set: 7 new shares for every 15 held at 250p, a 35.5% discount to TERP. It comes with a rebased dividend; gearing stays within policy.
Announced: 7 Oct 2026 · Launched, fully underwritten
Latest: 7 Oct 2026 · Terms set; subscription period opens 12 October
Size: approximately £550 million; 220,257,997 new shares, fully underwritten by Barclays and Morgan Stanley
Use of money: Deliver the strategic plan and invest in additional growth through Ofwat's cost change process to March 2030
Dividend: FY2026/27 total c.£125m vs £138m; DPS around 18p, c.30% underlying cut
Gearing: Regulated water businesses no more than 65% of RCV; Group unlikely to exceed approximately 70%
Terms: price and discount not in this announcement; see separate announcement and IOC
Price: 250 pence per new share; 7 new for every 15 existing
Discount: 35.5% to theoretical ex-rights price, based on 452p close on 6 October 2026
Timetable: Acceptance by 26 October 2026; results and dealings in new shares 27 October 2026

What comes next

Results of the rights issue announced (27 Oct 2026).

From the company's own announcements. Not investment advice.

Briefing

Pennon Group in 4 minutes

Pennon owns water and sewerage companies in the South West of England and water-only companies around Bristol and in Surrey. It returned to profit in 2025/26 as a record investment programme began to lift its allowed...

Act 1Buying Sutton and East Surrey, funded by shareholders
Act 2The loss year and a bigger raise
Act 3Profit returns, but the weather and the targets bite

Read the briefing →

Also at Pennon Group 6 open

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