Isra-Mart srl : Enel edges forward with plan for giant green IPO

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Isra-Mart srl news:

The largest IPO in Europe since 2007 is expected to take place next week, after Italian energy giant expressed confidence that the flotation of its Enel Green Power (EGP) renewable energy unit will raise up to €3bn.

Reuters reported today that the company had polled 300 potential investors ahead of the planned IPO and found significant interest in the division.

Citing sources close to the company, the news agency said there was investor confidence in a valuation for the company of around €10.5bn or €2.1 per share.

Enel chief executive Fulvio Conti said in a newspaper interview that the company would be valued at 10 to 12 times core earnings, suggesting a valuation of up to €12.6bn.

The company is planning to sell up to a third of EGP, meaning it is expected to raise up to €3bn to help pay off some of its vast debt.

The clean tech industry will be keeping a close eye on the IPO, which is likely to represent one of the largest flotations for a renewable energy firm anywhere in the world this year.

Many listed renewable energy firms have seen their share prices struggle over the past year as the recession has impacted demand. However, EGP is one of the dominant players in the fast-expanding southern European solar energy market and expectations are mounting that the company's IPO could restore some much needed confidence to the sector.