American Electric Power Co. announced the pricing of $2 billion worth of its common stock shares at $102 each. The lead book-running managers are Citigroup, Barclays, BofA Securities, and Wells Fargo Securities. All shares are expected to be borrowed by forward counterparties and sold to underwriters. AEP's stock closed at $104.18 in New York on Monday.

This pricing decision aligns with the increased pressure on US utilities to strengthen their electric systems due to rising power demand from artificial intelligence and the threat of extreme weather. The company plans extensive capital expenditures, with a projected five-year spending of $54 billion and the possibility of an additional $10 billion.

Analyst Paul Patterson from Glenrock Associates LLC commented that increased capital spending often leads companies to seek funds from capital markets, expecting other utilities to follow suit. AEP is a major power provider in the US, serving millions of customers across several states.

Agreements are expected to settle by December 31, 2026, with settlement options including cash settlement or net share settlement under forward sale agreements.