American Electric Power launches $2.6B stock offering with option for $390M more shares

American Electric Power (AEP) announced a registered underwritten offering of $2.6 billion in common stock, with underwriters BofA Securities, Goldman Sachs, and Morgan Stanley managing the sale. The offering includes forward sale agreements where shares will be borrowed and sold, with settlement expected by May 31, 2028. Additionally, underwriters have a 30-day option to buy up to $390 million more shares. Proceeds will support general corporate purposes such as capital contributions, acquisitions, and debt repayment. This move aims to fund AEP’s ongoing investments and operations across its extensive utility network serving 5.6 million customers in 11 states.