London, May 1, 2026, 14:04 BST
- United Utilities completed an £800 million equity raise at 1,312 pence a share, issuing new stock equal to about 8.9% of its existing ordinary share capital.
- The stock slipped 3.2% on Friday morning after jumping to a record high on Thursday, when rival water names also rallied.
- The money will help fund a proposed £2.5 billion expansion of United Utilities’ 2025–2030 AMP8 investment plan, with Ofwat decisions due later this year.
United Utilities Group PLC completed an £800 million share sale to help fund a larger water and wastewater investment programme in North West England, a rare large equity raise by a UK utility that landed as investors reassessed the sector’s growth prospects.
The timing matters. Britain’s water companies are under pressure to improve ageing infrastructure, while United Utilities is trying to turn higher regulated spending into a larger asset base and better returns. Reuters reported that the company’s shares rose as much as 11.7% on Thursday after it raised its five-year investment plan and forecast higher annual revenue.
The Warrington-based company placed 60.6 million shares with existing institutional shareholders and other investors, while retail investors bought 381,000 shares and directors subscribed for 15,335 shares. The placing price of 1,312 pence matched the April 29 closing price, the company’s filing showed.
United Utilities said the raise included a £400 million cornerstone commitment from ATLAS Infrastructure with The Future Fund. Chief Executive Louise Beardmore said the company had received “strong support” from new and existing shareholders for investment in North West water and wastewater infrastructure. Investegate
The proceeds are aimed at the equity portion of about £2.5 billion in incremental capital spending during AMP8, the five-year regulatory period running from financial 2025 to 2030. United Utilities now plans to lift AMP8 capital investment to about £11.5 billion from about £9 billion, while keeping gearing within its 55% to 65% target range.
The company has submitted about £1.4 billion of the extra spending to Ofwat under a “Re-opener” process, a mechanism for seeking approval for new investment during the regulatory cycle. The balance, about £1.2 billion, is expected through later submissions in 2027 and 2028, with Ofwat’s draft decision due in August and a final decision in December. Investegate
The first package includes about £200 million for water infrastructure to support proposed data centres in East Manchester, £220 million for non-potable water supply to the HyNet clean energy cluster in Ellesmere Port and £350 million for wastewater upgrades at 34 sites to support housing growth. United Utilities also plans about £410 million for asset replacement and about £190 million tied to Windermere and regional water resources.
The funding update came alongside stronger annual figures. United Utilities reported revenue of £2.62 billion for the year to March 31, up 22%, and pretax profit of £779 million, more than double the prior year. Underlying profit after tax rose 42.2% to £730 million, and the company guided to financial 2027 underlying revenue of £2.7 billion to £2.8 billion.
Jefferies analyst Ahmed Farman wrote that the higher growth, alongside a “robust balance sheet,” was positive for United Utilities and the broader water sector, Reuters reported. Pennon and Severn Trent also rose on Thursday, gaining 5.8% and 6.5% respectively, as investors read the update beyond one company. Reuters
There is still a hard edge to the story. Ofwat has not yet approved the added spending, and any cut, delay or change in allowed returns could alter the economics. Execution risk also sits higher with the bigger build-out: United Utilities ended March with net debt of £9.94 billion and gearing of 60%, in the middle of its target range.
The new shares are expected to start trading on the London Stock Exchange on May 5. After admission, United Utilities expects to have 742.9 million voting shares in issue.
