MDU Resources (MDU) said late Wednesday it launched a public offering of $200 million of common shares.

The company said it will grant underwriters an overallotment option to purchase up to an additional $30 million of shares.

The shares will be borrowed by forward sellers from third parties and sold to underwriters under forward sale agreements, according to a statement.

The company will not initially receive any proceeds from the offering. If MDU Resources elects physical settlement of forward sale agreements, it will use any proceeds for general corporate purposes and working capital, according to the company.

MDU shares fell 2.4% in after-hours trading.