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ContourGlobal to raise up to GBP 507m from London IPO

Expat Capital / All Rights reserved

November 9 (Renewables Now) - ContourGlobal plc (LON:GLO) expects its initial public offering (IPO) in London to raise up to GBP 507 million (USD 665.6m/EUR 574.4m), including over-allotments, after pricing it at GBP 2.50 per share.

With no over-allotments, the proceeds will be GBP 441 million.

The company, which has 2.64 GW of thermal and 1.5 GW of renewable gross power capacity, will get GBP 306 million of gross proceeds. It previously said it planned to use the amount raised to further strengthen its balance sheet and ensure further flexibility to fund future growth.

The offer includes 122.4 million of new shares and 54.03 million of existing shares. Stabilising manager Goldman Sachs International has been granted an over-allotment option of up to 26.46 million shares.

ContourGlobal LP, the major shareholder, will be left with a stake of 73% with no over-allotments, or 69% if the over-allotment option is exercised in full. At admission, ContourGlobal plc will have 670.7 million shares in issue, with a free float of between 25% and 29%, depending on over-allotments.

Conditional dealings in the shares on the London Stock Exchange (LSE) starts today, while commencement of unconditional dealings is expected on November 14. At the IPO price the market capitalisation of the company arrives at nearly GBP 1.68 billion.

PORTFOLIO

ContourGlobal has 69 power plants in 19 countries. Natural gas and methane account for about 31% of its capacity, 29% is coal and 21% is wind. In addition, 14% of the portfolio is hydropower plants (HPPs), 3% is oil and the remaining 2% come from solar power plants.

The company is focused on long-term contracted wholesale power generation, targeting high margins at lower risks relative to other segments in the power sector. Europe is its main market with 2,488 MW of capacity, followed by Latin America with 1,424 MW, and Africa with 228 MW. These figures are for the end of June 2017.

(GBP 1 = USD 1.31/EUR 1.13)

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Browse all articles from Tsvetomira Tsanova

Tsvet has been following the development of the global renewable energy industry for seven years now. She's got a soft spot for emerging markets.

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