Spain’s Opdenergy Completes €200 Million IPO at Floor Price

July 22 (Renewables Now) – Spanish renewable energy developer Opdenergy Holding SA completed the initial public offering (IPO) on Thursday, selling new shares for 4.75 EUR (4.82 USD) apiece – the lower end of the indicative range.

After its employees bought around 62,000 shares for 4,275 euros, the wind and solar company managed to raise around 200 million euros to fund the development of the portfolio.

In total, Opdenergy issued approximately 42 million new shares, which, combined with the 105.9 million shares it held before the capital increase, the IPO ended up valuing the company at around 703 millions of euros.

The shares will be admitted to trading on the Spanish stock exchanges today, July 22, under the symbol OPDE.

In a filing on Thursday, Opdenergy said its lead investor, Spanish entity Global Portfolio Investments SL, had fulfilled its commitment to buy shares representing 6% of the share capital after the offering. The company’s shareholders have approved the over-allotment option which, if fully exercised, will increase the free float from 22.4% to 25.3%.

Opdenergy will spend proceeds from project development to have 3.3 GW of renewables in operation and under construction by 2025, and become a more geographically diverse independent power producer.

The company warned in the prospectus that it posted losses in 2020, 2021 and the first quarter of 2022, and may continue to see negative results going forward, which could hamper its ability to successfully achieve the business plan. Additionally, the company said it was heavily indebted and needed a lot of cash to pay off its debt.

Debt levels will rise further as Opdenergy prepares to soon sign a financing agreement with Spanish lender BBVA (BME:BBVA) and the European Investment Bank (EIB) to borrow over 300 million euros to pay for the construction and commissioning of 605 MW of solar projects in Spain.

(1.0 EUR = 1.016 USD)

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