Enefit Green, the largest wind energy producer in the Baltics and a part of the biggest state-owned company Eesti Energia, announced the initial public offering (IPO) on the Nasdaq Tallinn Stock Exchange to raise 100 million euros for new wind and solar parks increasing the production of renewable electricity and accelerating the green turn in Estonia.
Enefit Green published an initial public offering, listing and admission to trading prospectus and announced the offering of shares that will last until October 14, 2021. Trading in Enefit Green’s shares is expected to begin on the Baltic Main List of Nasdaq Tallinn on 21 October, 2021.
With the IPO, Enefit Green targets to raise approximately 100 million euros. Enefit Green is planning to implement the company’s growth strategy and increase renewable energy production capacity 2.3 times to 1,100 megawatts by 2025 compared to today. “In order to achieve this goal, Enefit Green expects to raise up to 600 million euros in investments in 2021-2023, for which we will use the money raised during the share issue as well as other financing opportunities, such as bank loans,” noted Aavo Kärmas, Chairman of the Management Board of Enefit Green.
According to Mihkel Torim, Head of Swedbank‘s Baltic and Finnish Investment Banking, it will be one of the largest IPOs in the Baltics in recent years. “Through the IPO, Eesti Energia and its subsidiary Enefit Green hope to make a significant contribution to the growth and consolidation of green energy production in the region and to the achievement of common climate goals,” Torim said.
“This is a great milestone in exceeding our green deal targets,” said Raido Lember, Deputy Director of Business Development at Invest Estonia. “The initial public offering of our national energy company’s spin-off demonstrates how green energy transition can be done in a very progressive way. It proves again that we are very open for international business and foreign investors,” Lember added.
The base size of the IPO is up to EUR 115 million, consisting of an issue of new shares in the amount of up to EUR 100 million by Enefit Green and sale of secondary shares in the amount of up to EUR 15 million by Eesti Energia. In the base scenario, up to 17,3% of all the shares in Enefit Green are offered. The number of the secondary shares to be sold in the offering may be upsized by up to EUR 60 million. In such case, the total deal size may equal to up to EUR 175 million, corresponding to up to 26,4% of all the shares in Enefit Green. The shares are being offered publicly only in Estonia, Latvia and Lithuania.
Enefit Green is a renewable energy company that belongs to the group of Eesti Energia and owns a total of 22 wind farms in four markets – Estonia, Latvia, Lithuania, and Poland – as well as 38 solar power plants, 4 CHP plants, a pellet plant and a hydroelectric power plant. The company produced a total of 1.35 terawatt-hours (TWh) of electricity in 2020. Enefit Green’s revenue in 2020 amounted to EUR 162.7 million and its EBITDA was EUR 110.2 million. According to the business daily Äripäev, Eesti Energia has ranked first on the list of the most successful companies in Estonia.
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