October 17 (Renewables Now) - French renewables developer Neoen has successfully implemented an initial public offering (IPO) priced at EUR 16.50 (USD 19) apiece.
The offering currently amounts to EUR 628 million but this value can increase to EUR 697 million if the over-allotment option is exercised in full through November 15, 2018. Even before over-allotments, this is the largest capital raise on Euronext Paris in the last 16 months, Neoen said in a statement, adding that it was well received by a broad range of French and international investors.
The floatation was priced closer to the lower end of the previously announced indicative price range of EUR 16-19 apiece. It gives Neoen a market capitalisation of EUR 1.4 billion. The free float will range from 24% to 28.9%, depending on the extent to which the over-allotment option is exercised.
The offering will be settled on October 18, 2018 and Neoen’s shares will begin trading under the ticker “NEOEN” as from October 19, 2018.
The company itself raised some EUR 450 million from the issuance of new shares, while Impala SAS, the vehicle of Neoen's founder Jacques Veyrat, subscribed for about EUR 169 million worth of stock and will continue to be the majority shareholder. Neoen intends to use the proceeds to grow its business by building and operating new renewable energy plants.
Neoen, which was set up in 2008, has nearly 2 GW of capacity in operation or under construction and another 1 GW of projects secured. Its goal is to reach at least 5 GW in operation and under construction by end-2021.
(EUR 1.0 = USD 1.153)