Shares of Clearway Energy Inc (NYSE: CWEN) plummeted 5.03% in Wednesday's trading session following the company's announcement of a $100 million At-The-Market (ATM) equity offering program. The sharp decline reflects investors' concerns about potential share dilution and its impact on stock value.

The ATM program, revealed early Wednesday, allows Clearway Energy to offer and sell shares of its Class C common stock up to an aggregate sales price of $100 million. The company has partnered with several major financial institutions, including Morgan Stanley, BofA Securities, Citigroup, J.P. Morgan, and Wells Fargo Securities, to act as sales agents for the offer. This move provides Clearway with flexibility to raise capital by issuing new shares at market prices, but it also raises the prospect of diluting existing shareholders' stakes.

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 repaying or refinancing debt, funding working capital, capital expenditures, acquisitions, and investments. While this financial strategy aims to strengthen the company's position and fund growth initiatives, the market's immediate reaction suggests that investors are weighing the potential benefits against the dilutive effect of issuing new shares.