Wind farm stake sale on Uruguay bourse over 3 times oversubscribed

Uruguayan state-owned utility UTE earlier this month offered on the stock exchange an 80% stake in the 70-MW Valentines wind farm and subscriptions reached USD 146.7 million (EUR 141m).

Demand from retail investors hit USD 85.3 million, while big investors subscribed for USD 61.4 million. UTE, meanwhile, targeted just USD 42 million in total, as previously announced by Bolsa de Valores de Montevideo (BVM).

Competition among wholesale investors was so high that shares were sold at USD 115, while the nominal value was USD 100 apiece. That tranche targeted USD 22 million.

UTE previously raised funds on the stock market for the 140-MW Pampa and 70-MW Arias wind farms by using trust structures, while in the case of Valentines, a company set up by the utility to own the wind farm was floated. The issue opened to bids from retails investors on December 14 and closed on December 20, while the tranche for big investors was on December 21.

The Valentines wind farm is located between Florida and Treinta y Tres departments and has been partially operational since September. It required a total investment of about USD 171 million.

(USD 1 = EUR 0.96)

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