Renewable

October 7 (SeeNews) - The initial public offering (IPO) of Innogy SE (ETR:IGY), the new renewables, grids and retail operations unit of RWE AG (ETR:RWE), was priced at the top of the proposed range, giving it a valuation of EUR 20 billion (USD 22.3bn).

The boards of German utility RWE AG and Innogy SE on Thursday set a price of EUR 36 per share for the offering, at the high end of the EUR 32-36 range unveiled in September. A total of EUR 5 billion was raised from the sale of new and existing shares.

More specifically, the issuance of 55.55 million new shares generated EUR 2 billion in proceeds for Innogy, which it plans to use for investments in its core business areas. RWE, meanwhile, got EUR 3 billion, including a potential greenshoe, from the sale of existing Innogy shares. Following the IPO, it will have a stake of 75% in Innogy.

The offer was several times oversubscribed at the placement price, the companies said.  

"Investors’ interest in innogy is pleasing. This is strong proof of our unique, future-oriented business model. We plan to capitalize on the tailwind of the IPO to further strengthen our position as an innovative European energy company," said Peter Terium, who is currently chief executive of RWE and Innogy.

The Innogy shares are starting trading on the Frankfurt Stock Exchange today.

(EUR 1.0 = USD 1.116)