Hawaiian Electric Industries (NYSE: HE) sold approximately 2 million shares of American Savings Bank (NYSE: ASBH) on September 16, generating $29.5 million in net proceeds, the company said.
The sale represents about 30% of HEI's 9.9% ownership stake in the bank and is tied to American Savings Bank's initial public offering on the New York Stock Exchange. Underwriters have an option to purchase an additional 293,904 shares from HEI, which would yield roughly $4.4 million more in net proceeds if fully exercised.
American Savings Bank closed at $17.57 per share on September 18, its first regular trading session. Assuming the underwriter option is exercised in full, HEI's remaining 6.4% stake in the bank would be valued at approximately $73.5 million.
The transaction continues a phased exit from a holding that HEI once owned outright. On December 31, 2024, Hawaiian Electric Industries previously sold 90.1% of American Savings Bank, converting what was a wholly owned subsidiary into a publicly traded company. HEI has agreed to an 180-day lockup period restricting further sales of its remaining shares.
Scott Seu, chief executive officer of Hawaiian Electric Industries, said the company is "pleased that we were able to successfully monetize shares in American Savings Bank, further strengthening HEI's liquidity and financial position, and reducing financing needs for future wildfire settlement payments."
HEI plans to evaluate options for monetizing its remaining shares after the lockup expires, subject to market conditions and other factors, the company said.
Hawaiian Electric, the utility arm of HEI, supplies power to roughly 95% of Hawaii's population. The company has faced significant financial obligations stemming from the Maui wildfires, and the divestiture of its American Savings Bank stake is intended to support those settlement payments while reducing the need for additional capital raises.
