Sept 19 (Askume) – Hawaiian Electric Co (HE.N) shares fell 9.7% after the parent of Hawaii’s largest utility said on Thursday it would partially repay its share of a Maui wildfire settlement and plans to sell up to $250 worth of stock .
According to a regulatory filing, the Honolulu-based company will conduct a “market offering,” in which shares will be sold at the current market price rather than a predetermined price.
Hawaiian Electric raised concerns in August when it disclosed that it lacked a financing plan to compensate victims of the 2023 Maui wildfire, which killed more than 100 people, in a case totaling more than $4 billion .
The company’s shares have fallen about 23% this year, including intraday losses, while the S&P 500 Utilities (.SPLRCU) sector has gained 20.3%.
The lawsuit alleges the power company didn’t shut down power lines despite warnings that high winds could knock them down and spark wildfires.
Wells Fargo, Guggenheim Securities and Barclays Capital will handle the sale. Proceeds may also be used to invest in Hawaiian Electric’s divisions and future acquisitions.
The filing shows that as of Aug. 30, Hawaiian Electric had about 110.3 million shares outstanding.
According to LSEG, its price-to-earnings ratio for the next 12 months, a key industry metric that measures a company’s valuation, is 6.15, while the industry average is 16.08.
