AEP falls on pricing $2.6 bln share offering

American Electric Power

13/05/2026 11:44

** Electric utility American Electric Power AEP..O shares down 3.7% before the bell to $127.08 after $2.6 bln follow-on priced

** Columbus, Ohio-headquartered AEP late Tues announced ~20.47 mln shares at $127 with forward sale component

** Offering price represents 3.7% discount to stock's last close

** AEP entered into 2-year forward sale agreements with bookrunners BofA, Goldman Sachs and Morgan Stanley

** Upon settlement of agreements, it plans to use net proceeds for general purposes, including capital contributions to utility subsidiaries, acquisitions and potential debt repayment

** The forward sale enables the utility to lock in funding at current prices but delays new share issuance and earnings dilution until the proceeds are needed

** Prior to offering, co had ~544.1 mln shares outstanding for $71.8 bln market cap

** AEP last week raised its five-year capital investment plan to $78 bln as data center demand surges

** Through Tues, shares up ~14% YTD and outperforming nearly 6% advance in S&P 500 Utilities sector .SPLRCU

** Avg rating of 24 analysts is "buy"; median PT $144.50, latest LSEG data shows

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))