NRG Energy stock price drops, affiliated party prices issuance of 14.3 million shares

Investing.com – NRG Energy Inc (NYSE:NRG) stock fell 7.9% on Thursday after LS Power’s affiliate priced a public offering of 14.3 million shares at $164.00 per share.

The secondary offering by the selling shareholder is expected to generate approximately $2.35 billion in gross proceeds before underwriting discounts and commissions. NRG will not receive any proceeds from this sale. The shares sold are part of the consideration received by the selling shareholder after acquiring the LS Power portfolio entity, which was completed on January 30, 2026.

The offering is expected to close on March 4, 2026, subject to customary closing conditions. The selling shareholder has granted the underwriters a 30-day option to purchase up to an additional 2.15 million shares.

Barclays and Citigroup are serving as joint bookrunners for the offering, with J.P. Morgan and RBC Capital Markets also acting as bookrunners. BMO Capital Markets, Mizuho, MUFG, Scotiabank, and SMBC Nikko are acting as co-managers.

NRG has separately entered into a stock purchase agreement with the selling shareholder to repurchase $300 million worth of common stock at the public offering price in a private transaction. This repurchase is being conducted under NRG’s existing stock repurchase program approved by the board of directors and is expected to be completed simultaneously with the secondary offering on March 4, 2026.

The completion of the stock repurchase is conditioned on the completion of the secondary offering, but the secondary offering is not conditioned on the completion of the stock repurchase.

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