Shares of Clearway Energy Inc (NYSE: CWEN) tumbled 5.03% in intraday trading on Wednesday after the company announced a $100 million At-The-Market (ATM) equity offering program. The significant drop reflects investors' concerns about potential share dilution and its impact on stock value.

The ATM program, revealed early Wednesday, allows Clearway Energy to sell up to $100 million worth of its Class C common stock through several major financial institutions acting as sales agents. These include Morgan Stanley, BofA Securities, Citigroup, J.P. Morgan, and Wells Fargo Securities. The company plans to issue shares at market prices, which could potentially dilute the ownership stake of existing shareholders, explaining the negative market reaction.

Clearway Energy, one of the largest clean energy generation asset owners in the U.S., stated that it intends to use the net proceeds from the share sales for general corporate purposes. This may include debt repayment, refinancing, funding working capital, capital expenditures, and potential acquisitions and investments. While the ATM program provides financial flexibility for the company, the market's immediate response suggests that investors are wary of the potential dilutive effects on their holdings.