Experts say Enefit Green’s IPO on Tuesday can be a successful one, because interest for renewable energy companies on the stock market is increasing.
Enefit Green, renewables subsidiary of state-owned generator Eesti Energia, issued aninitial public offering (IPO)on Tuesday with the aim of raising €100 million.
Investment company Redgate Capital partner Mairo Kaseväli said he believes the share will be oversubscribed. He said retail investors can receive a quarter of the shares issued.
“The price is not in the same range as other companies in thee sector. It is clear that the company has not gone after every cent, the desire is to get this IPO done successfully,” Kaseväli said.
The expert said the renewable energy sector is hot. “What might be attractive to institutional investors, is that there are not too many renewable energy producers who produce exclusively from renewable sources,” Kaseväli noted.
“There are many companies that produce from traditional fossil fuels that have a renewable energy portfolio. But a company producing 100 percent renewable energy – there will certainly be interest. And from the perspective of an institutional investor – we have seen that anything that is put on offer, will get picked up,” he added.
Read more: ERR.EE