RWE AG will put 55.6 million innogy SE shares with a price range from EUR 32 to EUR 36 per share to the market through the initial public offering (IPO) of its newly set up renewables business, thus valuing innogy SE to up to EUR 20 billion.
Back in late 2015, RWE said that, in connection with a capital increase at the new company, some 10 percent of new share capital will be placed on the market.
The additional capital will enable the new subsidiary to step up its capital expenditure in renewable energy and the trends of the energy world of tomorrow, RWE said. The company added that it will increase its financial flexibility with regard to the nuclear phase-out.
The initial public offering of the new company’s shares is expected to take place by the end of the year.
As part of the offering, innogy SE shares in an aggregate investment amount of EUR 940 million from the holdings of RWE Downstream Beteiligungs will be acquired by funds and accounts under management by direct and indirect investment management subsidiaries of BlackRock, Inc. in a private placement. BlackRock has agreed to purchase innogy SE shares at the offer price determined in the IPO and has been guaranteed full allocation of such number of innogy SE shares for which they have provided a purchase commitment.
RWE’s Supervisory Board approved the restructuring and setting up of the new subsidiary in December. Innogy SE comprises RWE’s renewables, grid and retail operations in Germany and abroad, while RWE AG is focusing on conventional electricity generation and energy trading.
The mother company plans to keep the majority stake in innogy SE.