RWE to sell more in Innogy IPO

German energy group RWE AG (ETR:RWE) will be selling more stock than initially planned in Innogy SE, its new renewables, grids and retail operations subsidiary.

The company earlier this year presented a plan to float an Innogy stake of about 10% via a capital increase before the end of 2016. CEO Peter Terium told Bloomberg on Monday that there is strong investor interest so there will be a secondary offer. It remains to be decided how many existing shares will be sold in the private placement.

At the end of 2015 RWE decided to pool its renewables, grids and supply operations into a new subsidiary and list it on the bourse. The new unit started activities on April 1. Bloomberg cited knowledgeable sources as saying that RWE expects the initial public offering (IPO) to raise EUR 2 billion (USD 2.2bn).

The German company says Innogy is seen to report earnings before interest, tax, depreciation and amortisation (EBITDA) of between EUR 4.1 billion and EUR 4.4 billion for 2016, compared to EUR 4.5 billion in 2015.

(EUR 1 = USD 1.100)

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