Pennon Shares Plunge on Rights Issue, Dividend Cut

By EC Assets · Published 8 October 2026

Pennon Group shares experienced a significant decline after the water utility launched a £550 million rights issue and reduced its dividend. The company's stock fell as much as 20.4%. Pennon is also adding approximately £1 billion to its planned investment. The share price drop initially plunged to around 360 pence. Pennon is the owner of South West Water. Jefferies described the situation in its assessment. The company stated the additional funds will support investment across its water networks. This funding is aimed at a much bigger cleanup. Pennon is asking shareholders to fund this initiative. This article is intended for informational purposes only. It does not constitute investment advice.