The Spanish renewable-electricity producer Renovalia Energy SA may sell a stake of at least 25 percent in an initial public offering to fund a foreign expansion.
The company plans to start selling new shares to institutional investors as early as this month.
The Ortega family, which owns more than 90 percent of Renovalia, began making its own power to process food about 12 years ago and has since then gone on to build solar and wind farms.
Renovalia, based in eastern Spain, develops and runs wind, photovoltaic, solar thermal, and small-scale hydroelectric plants in Spain and abroad.
It has 300 megawatts of capacity in operation and 252.5 megawatts under construction.
Renovalia, along with a group of international companies including Italy's Enel Spa, has announced stock sales to build low-emissions power plants that may return the alternative-power IPO market to growth.
Renewable-energy IPOs are expected to increase this year due to the improving economy.
Rome-based Enel Spa is offering a 4 billion-euro stake in its Green Power unit.
Together the two companies could see stock sales raise about $9 billion in 2010.
Renovalia said it earned an operating profit of 55.9 million euros on sales of 118.6 million euros last year.
BNP Paribas SA and Banco Espirito Santo SA are co-global coordinators and joint book runners on the possible Renovalia sale.
Banco Espanol de Credito SA and La Caixa are arranging the deal.
Until next time,
Hilary
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