RWE's Innogy Renewables Unit Eyes $5.6 Billion Share Sale
September 23 2016 - 5:10AM
Dow Jones News
By Friedrich Geiger
FRANKFURT-- RWE AG's renewable energy unit Innogy SE said shares
worth up to about EUR5 billion ($5.6 billion) would be offered in
its initial public offering, valuing the German utility's
subsidiary at up to EUR20 billion.
Innogy said late Thursday it would sell 55.6 million shares
priced between EUR32 and EUR36 each to increase its capital by
roughly 10%. RWE will offer shares equivalent to a 8.2% stake in
Innogy from its own holdings, plus an 1.8% stake in an
overallotment option. RWE could offer more shares in the event of
strong demand, meaning RWE and Innogy could together sell a stake
of up to about 25%.
BlackRock Inc. has ordered shares worth EUR940 million for funds
that it manages, Innogy said .
RWE last year unveiled plans to spin off its renewables, retail
and power-grid operations in response to a shift toward renewable
energy that has eroded profitability. Like other utilities in
Germany and elsewhere in Europe, RWE has been hurt by low wholesale
electricity prices partly due to the power glut that has resulted
from a rise in renewables. In Germany, uncertainty surrounding
liabilities connected to the country's exit from nuclear power has
also weighed on operators.
Innogy plans to list on the prime standard segment of the
Frankfurt Stock Exchange. It didn't provide a firm date for the
listing, though it is expected in October. The offer price will be
set on the basis of a bookbuilding process expected to last about
two weeks.
Write to Friedrich Geiger at friedrich.geiger@wsj.com
(END) Dow Jones Newswires
September 23, 2016 04:55 ET (08:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
BlackRock (NYSE:BLK)
Historical Stock Chart
From Aug 2024 to Sep 2024
BlackRock (NYSE:BLK)
Historical Stock Chart
From Sep 2023 to Sep 2024