Neoen launches EUR-640m IPO in France

French renewables developer Neoen on Thursday launched its initial public offering (IPO) on Euronext Paris, expecting to raise about EUR 640 million (USD 736.8m) to back growth, it said in a press statement.

The size of the offering could reach up to EUR 711.5 million, based on the mid-point of the indicative offering price range, in the event that the provided over-allotment option is exercised in full. According to the filing, current shareholders, including French holding company Impala and French national investment bank Bpifrance, could offer additional shares.

The indicative price range set for the newly-issued stock will be EUR 16-19 apiece, which would give the French firm a market capitalisation of EUR 1.4 billion-1.5 billion, said CEO Xavier Barbaro, as quoted by Reuters. The offering price will be fixed on October 16.

Under the deal, Neoen will offer EUR 450 million worth of new shares, while two existing shareholders, namely FPCI Capenergie II and FPCI Fonds ETI 2020, will sell a EUR 190 million of shares in total. Following completion, Impala, the vehicle of Neoen's founder Jacques Veyrat, will remain the majority shareholder by subscribing for about EUR 170 million worth of shares.

Funds from the floatation will be allocated to support Neoen’s portfolio of installed renewable power capacity. CEO Barbaro noted that the proceeds will not go for acquisitions, while a focus will be put on investment in countries from The Organisation for Economic Co-operation and Development (OECD).

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.

Trading of Neoen’s stock on Euronext Paris is expected to start on October 19 under the ticker symbol "NEOEN."

(EUR 1.0 = USD 1.151)

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