Enefit Green AS, renewable energy subsidiary of Estonia’s state-owned Eesti Energia group, has announced its intention to proceed with an initial public offering (IPO) and listing of its ordinary shares on the Baltic Main List of the Nasdaq Tallinn Stock Exchange, the planned offering is expected to consist of both an issuance of new shares by the Enefit Green AS and a sale of existing shares held by Eesti Energia AS.
CEO of Eesti Energia and chairman of Enefit Green’s supervisory board Hando Sutter said at the press conference that Eesti Energia belongs to the people of Estonia and through Enefit Green’s IPO, all those interested will be able to directly become owners of the subsidiary of Eesti Energia.
“The initial public offering of Enefit Green’s shares represents a strong opportunity for the local investors to invest into and be part of the development of the national energy company. Enefit Green is one of the leading diversified renewable energy producers in the Baltic Sea region and investing into Enefit Green is a chance for everyone to contribute to making energy production more sustainable and decelerating climate change,” Sutter said.
Enefit Green has begun preparations for the IPO. The exact structure and timing of the offering is subject to, among other things, prevailing market conditions and the timing of receiving necessary approvals from the Estonian Financial Supervision Authority, as well as obtaining relevant corporate approvals.
CEO of Enefit Green Aavo Karmas said that proceeds of the IPO will allow Enefit Green to further its growth plans.
“The purpose of investments into new wind and solar parks is to increase the renewable power output and the group’s revenues. We consider Enefit Green to be a growth company, but envisage also distributing dividends to the shareholders based on the company’s strong operating cash flows and balance sheet. The shares will be offered to international institutional investors as well as local retail investors, including the employees of Eesti Energia group,” he said.
Citigroup Global Markets Europe AG, Nordea Bank Abp and Swedbank AS are acting as joint global coordinators and joint bookrunners of the offering and underwriters for the institutional offering. Enefit Green’s legal advisers are Cleary Gottlieb Steen Hamilton and Ellex Raidla, the banks’ legal advisers are Shearman & Sterling and Sorainen, and the project’s communication adviser is Agenda PR. Swedbank AS is acting as underwriter for the retail offering. LHV Pank AS is acting as retail selling agent in Estonia.
Swedbank’s head of corporate finance Baltics and Finland Mihkel Torim said that if the offering proves successful, it will be one of the largest IPOs in the Baltic states in recent years.
“With the IPO, Eesti Energia will significantly contribute through its subsidiary Enefit Green to a growth in green energy production in the local region and to progress towards meeting our shared climate objectives,” Torim said.
Enefit Green is a renewable energy subsidiary of the Eesti Energia group, which currently owns a total of 22 , 38 solar power plants, four cogeneration plants, a pellet plant and a hydroelectric power plant in four markets — Estonia, Latvia, Lithuania and Poland.
The company produced a total of 1.35 terawatt-hours of electricity in 2020. Enefit Green’s revenue totaled 162.7 million euros last year and EBITDA 110.2 million euros.