German energy company RWE plans to launch the initial public offering (IPO) of shares in its renewable energy, retail and grid spin-off, innogy SE, on the Frankfurt Stock Exchange on 7 October.
As reported last week, RWE intends to place 55.6 million of innogy’s newly issued shares on the stock market, representing roughly a 10 percent stake in the company.
The price range for the shares has been set between EUR 32 and EUR 36, translating into the company being valued up to EUR 20 billion.
In addition to the newly issued shares, the company’s existing shares held by RWE Downstream Beteiligungs GmbH, a wholly-owned subsidiary of RWE Aktiengesellschaft, will be offered.
The basis volume of the innogy SE shares to be sold by RWE Downstream Beteiligungs GmbH amounts to 45,455,000 shares and a potential additional volume amounts to 25,252,000 shares.
In addition, it has been determined that under possible stabilization measures up to 12,626,200 additional existing shares in the company held by RWE Downstream Beteiligungs GmbH may be allotted.
All in all, innogy SE could raise close to EUR 5 billion through the IPO. The company will use the fresh capital to increase its capital expenditure in renewable energy and the trends of the energy world of tomorrow, RWE said.
RWE will hold at least a 75 percent share in innogy following the IPO, and the company plans to keep its majority share in its renewable energy unit in the future.
The IPO has attracted a lot of interest, with around 75 percent of potential investors coming from the USA or the UK, RWE’s executives said in a conference call on Friday, 23 September.
Offshore WIND Staff