AEP dips on $2 bln stock offering plans

Shares of electric utility American Electric Power AEP..O down 1.5% in extended trading to $102.67 as it looks to raise equity

Columbus, Ohio-headquartered firm commences $2 bln stock offering

Co enters into forward sales agreements with bookrunners Citigroup and Barclays

Upon settlement of such agreements, expected to occur on or before Dec 31, 2026, co plans to use net proceeds for general purposes, including capital contributions to its utility subsidiaries and/or debt repayment

With ~534 mln shares outstanding immediately before this offering, per the SEC prospectus filing, co has ~$55.6 bln market cap

AEP shares on Mon finished down 0.9% at $104.18

YTD, stock up ~13% vs ~3% rise S&P 500 Utilities sector .SPLRCU and 2% decline in S&P 500 .SPX

Co in Feb said it was considering $10 bln boost to its 5-yr capex plan due to data center demand ramp up in its Midwest and southern service areas