Avatar-Backer Ingenious Plans $262 Million IPO for Clean Energy

Ingenious Media Holdings Plc, the financial adviser that backed films including Avatar and X-Men: First Class, is planning a 160 million-pound ($262 million) initial public offering of a unit that will invest in clean energy.

Ingenious Clean Energy Income Plc will be listed on the London Stock Exchange and the company has an option to increase the size of the offering to as much as 200 million pounds, London-based Ingenious said today in a statement. The company expects to offer a 6-pence dividend and to complete the transaction in March.

The fund aims to lure investors seeking dividends that beat returns on government bonds as the Bank of England keeps interest rates at record lows. About 900 million pounds was raised for renewable energy last year by four closed-end quoted funds similar to Ingenious’s, according to Angus McCrone, senior analyst at Bloomberg New Energy Finance.

“Those IPO’s last year appealed to wealth managers, well-to-do individuals and some pension insurance funds, attracted by yields of around 6 percent on relatively low-risk portfolios of operating-stage projects,” said McCrone. The main issue Ingenious will encounter in marketing its fund will be concern about the durability of U.K. political support for renewable energy.

Greencoat U.K. Wind Plc (UKW) raised 260 million pounds in a March IPO. Bluefield Solar Income Fund Ltd. (BSIF) became Britain’s first listed solar fund in July, raising 130 million pounds. The Renewables Infrastructure Group (TRIG) raised 300 million pounds in July to invest in solar and onshore wind projects. Foresight Solar Fund Ltd.’s October IPO raised 150 million pounds.

Ingenious intends to invest in energy-efficiency projects and operational onshore wind and solar farms. The fund already is evaluating some potential investments. Investec Bank Plc is acting as sponsor for the transaction.

This isn’t Ingenious’s first effort in cleantech. Another unit raised more than 10 million pounds in 2012 to invest in U.K. energy-efficiency companies.

To contact the reporter on this story: Louise Downing in London at ldowning4@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

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