Enel Green Power, an Italy-based renewable energy firm within Enel SpA (BIT:ENEL), has announced it will be going public around October 18th. Its initial public offering is set to be Europe’s largest new stock market listing in three years, totaling €3 billion ($4.13 billion).
The firm has a dominant presence in Europe, North America, and Latin America. With over 600 renewable energy plants in 15 different countries, Enel Green and its subsidiaries produced 21 billion kWh of energy from renewable energy sources in 2009.
To complement its current growth trajectory, Enel Green was just recently awarded new contracts that will double its wind energy capacity in Brazil. South America has been a particularly fruitful opportunity for Enel Green because of increased policy support, and of course a very strong wind resource.
Most of the proceeds from the IPO are expected to go towards paying down debt. Given that Enel Green had €5.3 billion in debt at the end of 2009, and roughly €3 billion currently, the IPO should enhance investor confidence in the firm’s ability to satisfy short term debt obligations and meet growth targets for market expansion.
The share sale is viewed as an essential piece of Enel Green’s strategy to meet its net debt target of €45 billion by the end of December.
Banks involved with this IPO include. . .
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Mediobanca SpA;
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Intesa Sanpaolo SpA;
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Credit Suisse Group;
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Goldman Sachs Group Inc.;
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J.P. Morgan Chase & Co.;
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Morgan Stanley;
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Barclays PLC;
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Bank of America Corp.'s Merrill Lynch;
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And, Banco Bilbao Vizcaya Argentaria SA.
We'll keep you posted as more develops.
Christos
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