The parent company of Hawaii’s largest electrical utility might sell up to $825 million in new stock, partly to help fund a pending settlement of claims over 2023’s Maui wildfire disaster.

Hawaiian Electric Industries Inc. announced Monday that it intends to sell up to $500 million worth of new stock to the public while also giving underwriters involved in the offering an option to buy as much as $75 million in additional shares.

HEI announced its latest plan to raise capital less than a week after announcing a separate plan to sell up to $250 million in new stock.

The first offering of up to $250 million could be in portions over time at prevailing market prices, possibly when share values are higher so that the company ends up selling a smaller number of shares. Such piecemeal stock sales could happen over the next three years.

The larger stock sale is intended to be at what is termed an “initial public offering” where all new shares are made available to the market at once at an intended price.

HEI priced this offering at $9.25 a share and said the offering is expected to close Wednesday. Shares of HEI closed at $10.90 Monday before the sale-offering announcement. In after-hours trading before HEI announced its stock sale price, shares at one point were down 9.7% at $9.84.

Underwriters selected to help carry out the sale — Wells Fargo Securities, Barclays Capital and Gug­gen- ­heim Securities — also have an option to purchase up to $75 million in additional HEI shares within 30 days from Monday at $9.25 minus underwriting discounts and commissions.

Both offerings are intended to raise capital that could in part be used to help fund the wildfire litigation settlement as well as for other company needs.

HEI subsidiary Hawaiian Electric has agreed to contribute $1.99 billion toward a tentative $4 billion settlement of more than 650 lawsuits that allege the company is responsible for the fire along with the state, Maui County, Kamehameha Schools, West Maui Land Co., Hawaiian Telcom and Spectrum/Charter Communications.

If approved by a state judge, the settlement calls for Hawaiian Electric to pay its portion evenly over four years. An initial payment isn’t expected to be made until mid-2025.

HEI officials have previously said the company could raise funds to pay the settlement through a variety of means, including stock sales, debt and other things but not utility bill increases for customers.

There also has been speculation that HEI, which owns American Savings Bank, might sell the Hawaii financial institution to help pay litigation claims.

Selling more stock is typically not welcomed by existing shareholders, who would see their stake in the company diluted.

HEI noted in a prospectus filed with the U.S. Securities and Exchange Commission that anyone buying new shares that the company plans to issue could experience future dilution as well if the company sells more stock later.

“Investing in our securities involves a high degree of risk,” the company said in the prospectus. “In order to raise additional capital, including capital necessary to fund our litigation settlement expenses, we may in the future offer additional shares of our Common Stock or other securities convertible into or exchangeable for our Common Stock at prices that may not be the same as the price per share in this offering.”

After the first stock sale plan was announced Thursday before the stock market opened, shares of HEI on the New York Stock Exchange fell 9.1% to close at $10.96, compared with Wednesday’s $12.06 closing price.

Since the fire on Aug. 8, 2023, which killed 102 people and destroyed most of Lahaina town, HEI shares have closed as low as $7.74 on July 8 and as high as $17.51 on July 19 after news reports about the settlement. The day before the fire, HEI shares were at $37.36.