Acciona targets valuation of $10.5 billion for its energy unit

MADRID (Reuters) – Spain’s Acciona is targeting a valuation of 8.8 billion euros ($10.47 billion) for the listing of its renewable energy unit after marketing the deal at the lowest end of its original range, the bookrunners of the deal said on Tuesday.

FILE PHOTO: The logo of Spanish energy, construction and services conglomerate Acciona, is projected on a wall during company’s annual shareholder meeting in Alcobendas, outside Madrid, May 10, 2016. REUTERS/Sergio Perez

Acciona is expected to trim the price at which it will sell shares in Acciona Energia, its most profitable unit, to 26.73 euros per share from an initial range of 26.73-29.76 euros, the bookrunners said.

Acciona, which on Monday already indicated it was marketing its IPO towards a lower price range of between 26.73 and 27.50 euros per share, declined to comment on Tuesday.

Spurred by a global drive to reduce planet-warming carbon emissions, Acciona plans to use the proceeds to add to a renewable generation fleet currently dominated by wind farms in the United States, Australia, Spain, Chile and Mexico, by 2025.

Following a record number of stock offerings at the beginning of this year, some of which performed poorly on the market, investors have appeared fatigued and some IPO candidates cancelled their plans.

In the 2021 ranking of major IPOs in Europe, this would still come close to the 7.6 billion pounds ($10.58 billion) valuation achieved by British online food company Deliveroo, and below the 12.1 billion euros by Vodafone’s infrastructure unit Vantage Towers.

The bookrunners also said the company was expected to offer up to 15% of the company, plus 15% of the over-allotment option, listing up to 17.25%.

This would also be down from initial plans to list up to 25% of the energy unit, plus 15% of the greenshoe option, which would have meant listing up to 28.75% of Acciona Energia.

Acciona Energia books are expected to close at 2 p.m. Madrid time (1200 GMT) on Tuesday, before its planned listing on the Madrid stock market on July 1.

At 26.73 euros per share, Acciona will raise around 1.32 billion euros from the 15% sale, in what would still be the largest IPO in Spain since mobile phone mast operator Cellnex debut in May of 2015. Taking into account the greenshoe option, that could rise to 1.52 billion euros.

($1 = 0.8400 euros)

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