Enel Green Power may exceed Iberdrola Renovables in market capitalisation
(ADPnews) - Oct 19, 2010 - After its initial public offering (IPO), Enel Green Power, the renewable energy arm of Italian power giant Enel SpA (BIT:ENEL), may hit a market capitalisation of EUR 10.5 billion (USD 14.579bn), higher than the EUR 10.105 billion at which Spanish rival Iberdrola Renovables (MCE:IBR) is valued.
Enel Green Power announced on Friday it had set the price range for its IPO at between EUR 1.80 and EUR 2.10 apiece. The bookbuilding period ends on October 29 at 1630 local time.
Once the operation is completed, Iberdrola Renovables will have a strong rival on the European market.
Enel, which holds Spanish utility Endesa (MCE:ELE), will list Enel Green Power on both the Milan and Madrid stock exchanges and targets to raise approximately EUR 3 billion.
The Spanish investors will have the option to subscribe between EUR 2,000 and EUR 60,000. The operation in Spain will be led by commercial bank BBVA (MCE:BBVA).
The bulk of the placement will go to institutional investors, but Enel has saved 35.375 million shares or 2.5% for retail investors. If there is stronger demand on the Spanish market, BBVA has been authorised to raise the offer.
(EUR 1.0 = USD 1.388)