Separately, the company said investors, including Appaloosa and Third Point (NYSE:TPRE), have agreed to purchase up to $3.25 billion of its stock once the company exits bankruptcy.
PG&E said up to $1.25 billion of its common stock offering is expected to be reserved for large shareholders, while up to 25% will be allocated to individual investors.
The private placement will be at a maximum price of $10.50 per share, a discount of over 16% to the stock’s last close.
PG&E Corp’s shares fell 12.5% premarket on announcement of the planned fundraises.
The utility is also preparing an $11 billion debt-financing package, an investor involved with the company’s funding plan said on Friday.
Last month, the San Francisco-based utility’s reorganization plan had been approved by a California power regulator.
The company needs to exit bankruptcy by June 30 to participate in a state-backed wildfire fund that would help reduce the threat to utilities from wildfires.