Estonia's Enefit Green plans IPO to back wind, solar projects

Enefit Green, the renewables arm of Estonian state-owned energy company Eesti Energia AS, plans to list on the Baltic Main List of the Nasdaq Tallinn Stock Exchange to raise funds for wind and solar projects as it pursues a 1.1-GW capacity target by 2025.

The company said on Thursday the initial public offering (IPO) is expected to include both new shares to be issued by Enefit and existing shares being sold by Eesti. The timing and structure of the offering will depend on market conditions and the timing of securing the needed approvals.

Today Enefit has 457 MW of power generation capacity across 22 wind, 38 solar and other power plants in four countries. It has a near-term development project pipeline of up to 600 MW, including 43.2 MW under construction. The projects are in countries like Estonia, Latvia, Finland, Poland and Lithuania.

“We consider Enefit Green to be a growth company, but envisage also distributing dividends to the shareholders based on the Company’s strong operating cash flows and balance sheet,” commented CEO Aavo Kaermas. More specifically, the firm intends to distribute 50% of the previous year’s net profit to shareholders. This excludes one-off effects and will depend on market conditions, growth and development plans.

In 2020, Enefit generated an EBITDA of EUR 110.2 million (USD 129m) on revenues of EUR 162.7 million. The profit for the period stood at EUR 67.9 million and in 2021 it paid net dividends of EUR 27.1 million.

Citigroup, Nordea Bank and Swedbank have been appointed joint global coordinators and joint bookrunners.

(EUR 1 = USD 1.171)

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