Hawaiian Electric shares plummet after company sells new stock
HONOLULU (HawaiiNewsNow) - Shares of Hawaiian Electric Industries Inc. fell 9% Tuesday as the utility offered more than 54 million new shares, diluting the value of existing stock.
The company, seeking to raise cash for a Maui wildfire settlement, offered new shares worth $500 million, double what it previously said it would sell.
Shares fell below $10 as HEI priced its new stock at $9.25 a share.
Wells Fargo, Barclays Capital and Guggenheim Securities, jointly handling the sale, negotiated the right to buy more than 8 million shares themselves.
Diluted stock can always appreciate in value alter, should HEI circumstances improve, whereas if the company filed for liquidation its stock would become worthless.
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