German wind, solar co SUMMIQ plans to list by end-2019
The Ravenstein wind farm in Germany. Source: SUMMIQ AG
SUMMIQ AG, a German renewable power producer fully-owned by project developer Green City AG, plans to list on the open market segment of the Munich Stock Exchange by the end of 2019.
SUMMIQ said on Saturday that it is getting ready for an initial public offering (IPO) through which it would finance the acquisition of 190 MW of renewable energy projects. It expects to raise between EUR 75 million (USD 82.7m) and EUR 100 million in a primary offering of new shares from a capital hike against contributions in cash.
M.M.Warburg & CO (AG & Co) KGaA serves as global coordinator and bookrunner.
The company has entered into a cooperation agreement with its current owner, renewables financier and developer Green City, that gives SUMMIQ preferential access to 1 GW of projects in the parent's pipeline. SUMMIQ will focus on the purchase of onshore wind and solar parks, ranging in size from 5 MW to 50 MW. These two energy sources will account for at least 80% of its portfolio, while the company will also invest in hydro, energy storage and other technologies.
SUMMIQ expects to reach a 1-GW portfolio within five years. The initial projects for which it has purchase agreements in place are located in Germany and Italy and represent a combined onshore wind capacity of 28 MW, already in operation. The company has also secured for acquisition of nine other renewable energy plants totalling 162 MW, located in Germany, Italy, Spain and France, that should be up and running by the end of next year.
In the second phase of building out its portfolio, the company intends to add 22 assets with a combined capacity of 525 MW in Germany, Italy, Spain and France. A further 222 MW are planned as part of Phase 3, with estimated commercial operation dates until 2024.
SUMMIQ is targeting an internal rate of return (IRR) on portfolio level of between 6% to 8% per year and intends to distribute a substantial portion of its annual net profit to its shareholders. Following the IPO, Green City will be left with a stake of less than 1% in SUMMIQ.