A subsidiary of Constellation Energy Group plans to raise $110 million in an initial public offering of 6 million shares on the New York Stock Exchange, according to a filing with the Securities and Exchange Commission.
No price range or date for the stock sale was included in the filing.
The subsidiary, Constellation Energy Resources, was created in February 2005 and is based in Baltimore.
It acquires and develops oil and natural gas properties.
IPO proceeds will be used to pay down debt and provide working capital.
Hoping to calm investor worries about price swings in the natural gas and oil commodities market, the company said that it plans “a commodity price risk management program” aimed at reducing “the volatility in our revenues due to commodity price changes.”
Wall Street analysts have been cautious about investing in Constellation Energy saying future profits could depend on whether a planned merger with FPL Group in Florida succeeds.
