Italian energy firm Eni SpA (BIT:ENI) said on Thursday that its board has given the green light for the preparations of an initial public offering (IPO) of a minority stake in its recently created gas and power supply and renewables division, provisionally called Eni R&R, in 2022.
The listing will hinge on market conditions. Eni plans to keep a majority holding in the spun-out entity, according to the filing. The company will provide further details on the business, including its name, in an investor presentation on November 22.
The Italian oil and gas firm first unveiled plans for combining and floating retail and renewable energy operations in May. It has since completed the merger and expects the unit to double its earnings before interest, taxes, depreciation, and amortisation (EBITDA) to EUR 1.2 billion (USD 1.38bn) in 2025 from the EUR 600 million in 2021.
Eni R&R is on track to develop more than 6 GW of renewables capacity by 2025, boosting that to over 15 GW by 2030, Eni said.
The division is also the second-largest operator of EV charging points in Italy. Plans are afoot to grow the charging stations to more than 30,000 by 2030 from 5,000.
The combination of green energy production with retail supply operations creates cost synergies and stabilises cash flow given the hedge between generation and retail sales, according to the parent company.
"Retail and renewables is an exceptional business, which combines a growing pipeline of renewable capacity with an attractive and increasing customer base, and is uniquely positioned to meet the opportunities presented by the energy transition. An IPO will unlock significant value, positioning the business for growth and helping both Eni and its customers reach net zero emissions," Eni CEO Claudio Descalzi stated.
Earlier media reports pegged the valuation of the entity to EUR 9 billion, including debt.
(EUR 1 = USD 1.156)
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