HESM Stock: Why It Substantially Fell

By Amit Chowdhry ● Oct 6, 2021
  • The stock price of Hess Midstream LP (NYSE: HESM) fell over 10% in the most recent trading session. This is why it happened.

The stock price of Hess Midstream LP (NYSE: HESM) fell over 10% in the most recent trading session. Investors responded negatively to Hess Midstream announcing the upsizing and pricing of an underwritten public offering of an aggregate 7,500,000 Class A shares representing limited partner interests in HESM by a subsidiary of Hess Corporation and an affiliate of Global Infrastructure Partners, at a public offering price of $26 per Class A share.

The offering was upsized from the previously announced 6 million Class A shares. And the selling shareholders have granted the underwriters a 30-day option to purchase up to 1,125,000 additional Class A shares at the public offering price less underwriting discounts and commissions.

The gross proceeds from the sale of Class A shares by the selling shareholders are expected to be about $195 million. And HESM will not receive any proceeds from the sale of Class A shares in the offering.

The offering is expected to close on October 8, 2021, subject to customary closing conditions. And J.P. Morgan Securities LLC and Citigroup Global Markets are acting as joint book-running managers of the offering.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.