American Electric Power Prices Its Shares at $102 Apiece

(Bloomberg) -- American Electric Power Co. has priced the $2 billion of its common stock shares that it’s offering at $102 apiece.  

Citigroup, Barclays, BofA Securities and Wells Fargo Securities are acting as lead book-running managers, AEP said in a statement. All shares are expected to be borrowed by the forward counterparties and sold to the underwriters.

AEP’s stock closed at $104.18 in New York on Monday. 

The pricing comes as US utilities face major demands to bolster and fortify their electric systems due to surging power demand from artificial intelligence, and as extreme weather threatens the grid. The company has big capital expenditure plans, with a five-year outlook to spend $54 billion, and the potential for an additional $10 billion.

“If you’re going to be spending a lot of capital, it’s not surprising that you’d be going to capital markets,” said Paul Patterson, a utility analyst for Glenrock Associates LLC. He predicted that other utilities would make similar moves because there’s so much opportunity to build in the sector.

AEP is one of the biggest power companies in the US and sells electricity to millions of customers in Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia.

Settlement of the agreements is expected to occur on or prior to Dec. 31, 2026. AEP may elect cash settlement or net share settlement for all or a portion of its rights or obligations under the forward sale agreements, it said.

(Updates with the pricing of shares.)

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