NEW YORK (TheStreet) -- Shares of Southern Co. (SO - Get Report) were falling in after-hours trading on Tuesday after the company announced a public offering of 32.5 million shares of common stock.

Through the offering, Southern expects to raise gross proceeds of about $1.6 billion, according to a company statement.

Barclays (BCS), Goldman Sachs (GS), Morgan Stanley (MS) and Wells Fargo (WFC) are acting as joint book-running managers for the offering.

Southern plans to use the proceeds from the sale to fund a portion of the purchase price for its pending deal for a 50% equity in Southern Natural Gas.

The rest of the earnings will go toward general corporate purposes, potentially including investments in the Atlanta-based company's subsidiaries including Southern Power.

The offering will close on August 19.

(Southern Co. is a holding in David Peltier's Dividend Stock Advisor.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings rated this stock as a "buy" with a ratings score of A+.

The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations, notable return on equity and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

You can view the full analysis from the report here: SO