FuelCell Energy shares fall after offering priced

Associated Press

DANBURY, Conn. (AP) — Alternative energy producer FuelCell Energy Inc. on Thursday priced a public offering of 20 million shares at $1.50 per share, raising about $30 million that the company plans to use for expansion and general operations. The offering price was below Wednesday's closing price of $1.76 per share, and the stock tumbled more than 14 percent in afternoon trading.

The offering is expected to close by Tuesday.

FuelCell Energy, based in Danbury, Conn., makes and sells fuel cells that generate electricity. A wide variety of fuel stocks can be used in the process; including methanol, coal gas, and propane. The company sells its products to utilities and institutions.

The company said it will get about $28 million from the offering after deducting fees and discounts for underwriters. FuelCell gave underwriters a 30-day option to buy up to 3 million additional shares, raising another roughly $4.5 million if exercised in full.

Lazard Capital Markets LLC is sole book-running manager for the offering. Stifel Nicolaus Weisel is co-lead manager and FBR Capital Markets & Co. is co-manager.

Earlier this month the company announced that South Korean utility company Posco Energy will buy 20 million shares of FuelCell at $1.50 per share.

Posco is FuelCell's largest shareholder and already held 10.8 million shares. The company will now own 22 percent of FuelCell's shares.

Shares of FuelCell dropped 25 cents, or 14.2 percent, to $1.51 in afternoon trading.