Hawaiian Electric falls after disclosing $250 mln stock offering plan
Updates shares in paragraph 1
Sept 19 (Reuters) -Shares of Hawaiian Electric HE.N fell 9.7%on Thursday after the parent company of Hawaii's largest utility said it plans to sell up to $250 million worth of shares to partly fund its portion of the Maui wildfire settlement.
The Honolulu-based company will conduct an "at-the-market offering," selling shares at prevailing market prices rather than a predetermined rate, according to a regulatory filing.
In August, Hawaiian Electric raised going-concern doubts after disclosing it lacked a financing plan for its share of a more than $4 billion settlement to compensate victims of the 2023 Maui wildfires, which claimed over 100 lives.
The company's shares have fallen about 23% this year, including the session's losses, compared with S&P 500 Utilities .SPLRCU sector's 20.3% gain.
Lawsuits have claimed that the utility failed to shut off power lines despite warnings that high winds might blow them down and spark wildfires.
Wells Fargo, Guggenheim Securities and Barclays Capital will handle the sale. Proceeds may also fund investments in Hawaiian Electric's units and future acquisitions.
Hawaiian Electric had about 110.3 million outstanding shares as of Aug. 30, according to the filing.
Its price-to-earnings ratio for the next 12 months, a key industry metric to gauge company valuations, is 6.15, compared to the industrymedian of 16.08, according to LSEG data.
Reporting by Sourasis Bose in Bengaluru: Editing by Tasim Zahid
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
