Portugal's Greenvolt could raise up to EUR 205m from IPO, capital hike

Portuguese biomass energy company Greenvolt – Energias Renovaveis SA will seek to raise up to EUR 150 million (USD 177.7m) from a planned initial public offering (IPO) on Euronext Lisbon next week.

The company, which is the biomass energy subsidiary of Portuguese pulp producer Altri SGPS SA (ELI:ALTR), said on Friday its stock will be offered at an indicative price of between EUR 4.25 and EUR 5.00 apiece. The offer period was launched on July 2, while bourse trading is expected to commence on July 13.

The transaction itself will consist of a primary private placement of up to 30.59 million newly issued ordinary shares. Some of the parent company’s core investors, among which Promendo Investimentos SA, Caderno Azul SA and Actium Capital SA, have committed to subscribe for EUR 22.5 million of the offered amount.

The deal offers an over-allotment option for an additional 4.59 million shares that, if exercised in full, will add up to 35.2 million of Greenvolt’s stock sold as part of the IPO. The transaction is set to close on July 8.

In addition to the IPO, Greenvolt will allocate up to EUR 56 million worth of new shares to the shareholders of Polish renewable energy firm V-Ridium, which in May agreed to take part in Greenvolt’s capital increase in the context of its IPO. The polish firm has a pipeline of around 2,800 MW of wind and solar projects mainly in Greece and Poland.

Greenvolt operates five biomass plants with roughly 98 MW of installed capacity. Previously, its parent said that forest biomass will continue to be Greenvolt’s core business, but it also wants the subsidiary to become an international player and branch out into the wind and solar power segments.

Greenvolt aims at deploying close to 3.7 GW of capacity by 2025, of which roughly 1 GW will remain on its balance sheet.

(EUR 1.0 = USD 1.185)

Choose your newsletter by Renewables Now. Join for free!