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EDP Renovaveis IPO Raises $2.4 Billion

Portuguese utility EDP has raised EUR 1.57bn (USD 2.4bn) from the IPO of its renewables unit, EDP Renovaveis, fixing a price just below the midpoint of its range.

In a statement, EDP (Lisbon:EDP) said it had fixed a final subscription price of EUR 8, having initially set a range of between EUR 7.4 and EUR 8.9. Both the public and the institutional tranches were oversubscribed, by 87.9 and 6.1 times respectively, EDP said.

The total amount raised from the sale of 196m shares, around 22.5% of the company's share capital, was EUR 1.568bn (USD 2.43bn), the company said. A further 30m shares could be sold through a greenshoe option, potentially generating an extra EUR 240m.

Global co-ordinators and bookrunners Banco Comercial Portugues, Banco Espirito Santo, Caixa Geral de Depositos, Citigroup, Morgan Stanley and UBS have 30 days from 2 June to exercise the option, a spokesman for EDP told New Energy Finance.

The money raised so far values EDP Renovaveis at EUR 6.9bn (USD 10.7bn). It has 3.7GW of gross installed capacity around the world: 1639MW in Spain, 1556MW in the US, 424MW in Portugal and 87MW in France and Belgium. It also has 1149MW under construction, nearly all in the US and Spain, and a 16GW pipeline, 11GW of which is the US.

EDP plans to use the funds from the listing to increase global capacity to 10.5GW by 2012.

Shares in EDP Renovaveis will begin trading on Euronext Lisbon on 4 June, under the ticker EDPR.

Co-lead managers of the IPO were Deutsche Bank, JP Morgan, Merrill Lynch, Santander Investment and Société Générale. Legal advisers to EDP were Cleary Gottlieb Steen and Hamilton for US and English law, MLGTS for Portuguese law, and SJ Berwin for Spanish law. Linklaters advised the managers.