Innogy Markets Biggest EU IPO Since 2011 at Top End of Range

  • Price range tightened to 35-36 euros/share from 32-36 euros
  • Order books fully covered throughout deal’s price range

Innogy SE, the green energy business of German utility RWE AG, is seeking to price Europe’s largest initial public offering in five years at the upper end of the marketed range. 

Innogy, which contains RWE’s renewable energy, retail and grid businesses, is now offering shares at 35 to 36 euros each, according to Vera Buecker, a spokeswoman for the Essen-based company to be listed Friday. That compares with an original range of 32 to 36 euros, and values Innogy at at least 19.4 billion euros ($22 billion). It’s the region’s biggest IPO since miner Glencore Plc’s offering in 2011.

Germany’s biggest utilities have been forced to adapt to the nation’s shift away from nuclear, coal and natural gas, a policy that’s undermined power prices and hurt profitability at traditional power plants. Competitor EON SE last month listed most of Uniper SE, its conventional power-generation business, and kept renewables, grids and household customers for itself.

RWE will place 10 percent to 15 percent of existing Innogy stock on top of listing 10 percent of new shares on the Frankfurt stock exchange, it said Sept. 23. Order books are fully covered throughout the narrowed price range, Buecker said, confirming an update on the deal from sale advisers Wednesday. That would leave a 75 percent stake to RWE.

The utility fell as much as 3 percent before trading down 2.1 percent at 14.95 euros at 3:02 p.m. in Frankfurt, the second-biggest decliner in Germany’s benchmark DAX index.

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