Enefit Green, renewables subsidiary of state-owned generator Eesti Energia, has issued an initial public offering (IPO), the company has announced. With it, Enefit Green aims to raise €100 million, which it says it will target towards investments.
Enefit Green board chair Aavo Kärmas said: "With the support of the money raised during the share offer, we plan to implement the company's growth strategy and increase our renewable energy production capacity 2.3 times, to 1,100 MW, by 2025, compared with today. In order to achieve this goal, Enefit Green expects to need up to €600 million in investments in 2021-2023, for which we will use the money raised during the share issue, as well as other financing opportunities, such as bank loans."
"The main goal of investments in new wind and solar parks is to increase the production of renewable electricity and the company's revenues. The share of Enefit Green, as the largest wind energy producer in the Baltic States and one of the leading renewable energy companies in the entire Baltic Sea region with a diversified production portfolio, has primarily growth potential, but dividends are also planned," Kärmas continued, according to an Enefit Green press release.
Mihkel Torim, Head of the Baltic and Finnish Investment Banking at Swedbank, overseeing the IPO, said: "Considering Enefit Green's profile and the volume of the IPO, we expect great interest in the offer. Investors have the opportunity to become owners in one of the strongest renewable energy companies in the region at a time when demand for renewable energy is growing rapidly worldwide."
"By investing in new wind and solar parks, Enefit Green intends to increase renewable electricity production and the company's revenues. Participating in the share offer of a renewable energy company is also an opportunity for everyone to contribute to more environmentally friendly energy production and thus help to curb climate change," Torim added.
The IPO ranges in price from €2.45 to €3.15, Enefit Green says, while subscription orders submitted in the retail offering must be submitted at a price corresponding to the highest level of the price range, i.e., €3.15 per share.
The shares are being offered publicly only in Estonia, Latvia and Lithuania.
The final offer price will be determined through a book-building process and will be the same for investors in both retail and institutional offerings.
Trading in Enefit Green's shares is expected to begin on the Baltic Main List of Nasdaq Tallinn on or around October 21, Enefit Green says.
Enefit Green says it aims raising €100 million for the purposes of financing its development projects and potential new projects.
In particular, Enefit Green plans to use the net proceeds of the IPO for the purposes of developing the wind and solar parks in its near-term pipeline of up to 600 MW.
The listing and admission to trading prospectus runs to October 14.
The IPO's base size goes up to €115 million, once the sale of secondary shares of €15 million by Eesti Energia are added.
Up to 17.3 percent of all the shares in Enefit Green are offered in the base scenario, Enefit Green says, while secondary shares to be sold in the offering may be upsized by up to €60 million, which means the total deal size may be to up to €175 million, or up to 26.4 percent of total shares.
The offer period runs October 5, 10.00 a.m. to October 14, 2.00 p.m., with results to be announced on or around October 15, 2021.
The first day of trading in the shares on Nasdaq Tallinn Stock Exchange is expected to begin on or around October 21, 2021.
Estonian retail investors wishing to subscribe for Enefit Green shares should contact Swedbank AS or AS LHV Pank or another account operator who manages their securities account in the Estonian Register of Securities and submit a subscription application in accordance with the prospectus during the offer period. Latvian or Lithuanian retail investors wishing to subscribe for Enefit Green shares should contact the financial institution that is a member of Nasdaq Tallinn and that manages their securities account and submit a subscription application during the offer period in a form accepted by the financial institution and in accordance with the prospectus.
The offer is organized by Citigroup Global Markets Europe AG, Nordea Bank Abp and Swedbank AS. The main organizer of the retail offering is Swedbank AS and the sales agent is AS LHV Bank. Enefit Green's legal advisors are Cleary Gottlieb Steen Hamilton and Ellex Raidla, the banks' legal advisers are Shearman & Sterling and Sorainen, and the communication advisor for the project is Agenda PR. Each of the Enefit Green and Eesti Energia have entered into standard 180-day lock-up arrangements subject to customary carve-outs and waivers by the banks.
The Prospectus in English together with its translation into Estonian language and the translation of its summary into Estonian, Latvian, Lithuanian and Russian language are available in electronic form as of the date of this announcement on the company website here (in English).
Across Estonia, Finland, Latvia, Lithuania and Poland, Enefit Green owns 22 wind parks, 38 solar parks, four cogeneration plants, a pellet plant and a hydro power plant. The total capacity of Enefit Green's portfolio is 457 MWh. In 2020, Enefit Green produced 1.35 TWh of electricity.
Editor: Andrew Whyte