Enefit Green IPO shares oversubscribed 4-fold

Enefit Green CEO Aavo Kärmas.
Enefit Green CEO Aavo Kärmas. Source: Eesti Energia

Shares issued in an initial public offering (IPO) of state-owned energy giant Eesti Energia's renewables subsidiary, Enefit Green, were oversubscribed fourfold following flotation. All of Eesti Energia's management board and supervisory board members who applied for shares found their applications fully satisfied, while some other applicants did not.

Over 60,000 retail investors subscribed, with over 80 percent obtaining the full subscription applied for, BNS reports, while the base rate is €2.90 per share.

Enefit Green CEO Aavo Karmas, said that the company plans to use the money raised but the IPO to implement the its growth strategy and to increase its renewable energy production capacity over two-fold by 2025.

55 percent of shares were allocated to retail investors and the remaining 45 percent to institutional investors.

Retail investor subscriptions up to 1,000 shares were fully fulfilled, with 5.5 percent of the overall requested subscriptions exceeding that level.

Eesti Energia's supervisory and management board members in its companies across all three Baltic States were allocated 100 percent of their subscribed amount of up to 2,000 shares with, again, 5.5 percent of requested subscriptions exceeding that level.

Supervisory board chair Hando Sutter claims the event demonstrates the confidence investors have in Enefit Green's team and plan.

The secondary shares to be sold in the offering was subject to upsizing by up to €60 million, resulting in an upsized deal of up to €175 million, BNS reports.

Enefit IPO quick facts:

  • 34,482,759 new shares and 25,862,068 secondary shares were on offer, meaning a total of 60,344,827 shares were available.
  • The IPO shares will represent 22.8 percent of all the shares for the company as a whole.
  • The total gross proceeds on offer come to c. €175 million, of which the total gross proceeds to Enefit Green are approximately €100 million, and to Eesti Energia approximately approximately €75 million, Nasdaq Tallinn says.
  • In the base case, the company aimed to raise €100 million by issuing new ordinary shares, while Eesti Energia aimed to raise up to €15 million, through the sale of existing ordinary shares, for a total base deal size of €115 million.
  • Offer shares allocated ill be eligible for any dividends paid by the company for the financial period started on January. 1, 2021, and for any subsequent financial period.
  • Enefit Green has also pledged to pay a dividend equaling 50 percent of the net profit for the previous year.
  • IPO shares allocated to investors are expected to be transferred to the securities accounts of the investors on or about October 20, 2021.
  • Trading with the shares of the company on Nasdaq Tallinn's Baltic Main List is expected to commence on or about October 21, 2021. 

Enefit Green operates 22 wind parks, 38 solar power plants, four cogeneration plants, a pellet plant and a hydroelectric power plant in Estonia, Latvia, Lithuania and Poland.

The company produced a total of 1.35 TWh of electricity in 2020. Enefit Green's revenue totaled €162.7 million last year, and EBITDA came to €110.2 million.


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Editor: Andrew Whyte

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