UK Investment Guides Loader

Ignitis looking to raise up to £535m from IPO

written by Bella Palmer

The Lithuanian renewables-focused utility firm said that it will use the proceeds to support its growth, including investments in the Networks and Green Generation segments

Lithuanian renewables-focused utility Ignitis Group, or AB Ignitis grupe, is looking to raise up to EUR 585 million (£535.73 million) from its initial public offering (IPO) in Vilnius and London.

The company announced Monday it is selling 20.9 million new shares, or a stake of 27.8%, to institutional investors and to retail investors who are residents of Lithuania, Latvia and Estonia. The price range for the IPO has been set at EUR 22.5 (£20.61) to EUR 28 (£25.64) per share, with the final offer price to the determined by the book-building process.

The subscription period will end on October 1.

Ignitis said it will use the proceeds to support its growth, including but not limited to investments in the Networks and Green Generation segments, and for general corporate purposes. At present, its Green Generation capacity stands at 1.1 GW and the company aims to increase it to 1.6 GW-1.8 GW, and then to 4 GW by 2030. This segment accounts for roughly 17% of EBITDA.

Ignitis has applied for the admission of its ordinary shares to trading on the main trading list of Nasdaq Vilnius and for admission of its global depositary receipts (GDRs) to the official list of the Financial Conduct Authority (FCA) of the UK and to trading on the main market of the London Stock Exchange (LSE). Swedbank AB, in cooperation with Kepler Cheuvreux SA, has been appointed stabilisation manager, which it gives it the right to buy up to 10% of the total shares and GDRs offered in order to stabilise the price at a higher level.

Upon completion of the IPO, Lithuania’s Ministry of Finance will be left with a stake of at least 72.2% in Ignitis. If stabilisation trades do take place and Ignitis decides to buy back shares from Swedbank, Lithuania’s stake in the company may increase to 75%.

JP Morgan Securities plc, Morgan Stanley & Co International plc, Swedbank AB and UBS Europe SE serve as joint global coordinators and joint bookrunners. BofA Securities Europe SA also acts as a joint bookrunner.

Ignitis operates in Lithuania, Latvia, Estonia, Poland and Finland.


The opinions expressed by our writers are their own and do not represent the views of UK Investment Guides. The information provided on UK Investment Guides is intended for informational purposes only. UK Investment Guides is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.

Share this post with friends!