Spain's Opdenergy wraps up EUR-200m IPO at floor price
Inside the building of the Madrid Stock Exchange. Image credit: Bolsa de Madrid (www.bolsamadrid.es)/Daniel Santamaria
July 22 (Renewables Now) - Spanish renewables developer Opdenergy Holding SA on Thursday finalised the initial public offering (IPO), selling new shares for EUR 4.75 (USD 4.82) apiece -- the bottom end of the indicative range.
After its employees bought roughly 62,000 shares for EUR 4.275, the wind and solar company managed to raise around EUR 200 million it was aiming at to fund the portfolio development.
In total, Opdenergy issued around 42 million new shares, which combined with 105.9 million shares it had before the capital increase, the IPO ended up valuing the company at some EUR 703 million.
The shares will be admitted to trading on the Spanish stock exchanges today, July 22, under the ticker symbol OPDE.
In a bourse filing on Thursday, Opdenergy said its cornerstone investor, Spanish entity Global Portfolio Investments SL, had fulfilled its commitment to buy up shares representing 6% of the share capital post-offering. The company’s shareholders approved the over-allotment option, which if fully exercised, will boost the free float to 25.3% from 22.4%.
Opdenergy will spend the proceeds on project development to have 3.3 GW of renewables in operation and under construction in 2025, and become a more geographically diversified independent power producer.
The company warned in the prospectus it had posted losses in 2020, 2021 and the first quarter of 2022, and may continue to see negative results in the future, which could hinder its ability to successfully realise the business plan. Additionally, the company said that it is heavily indebted, and needs a lot of cash to service the debt.
The level of indebtedness will further increase as Opdenergy prepares to soon sign a financing agreement with Spanish lender BBVA (BME:BBVA) and the European Investment Bank (EIB) to borrow over EUR 300 million to pay for the construction and commissioning of 605 MW of solar projects in Spain.
Sladjana has significant experience as a Spain-focused business news reporter and is now diving deeper into the global renewable energy industry. She is the person to seek if you need information about Latin American renewables and the Spanish market.