PPC announces share offering terms
Public Power Corporation has announced the terms of the share offering that will reduce the Greek state’s 51% majority to a blocking minority.
PPC’s Board of Directors approved on Friday the issuing of 130 million to 150 million new shares, aiming to raise between €1.105 billion to €1.350 billion euros.
The offering price will range between €8.50 and €9 per share.
Shareholders had approved the offering at a virtual meeting on Oct. 19.
The offering will be made through a combination of public subscription and private placement.
Greece’s Capital Market Commission is expected to approve the prospectus Monday; the book of offers will open on Tuesday 2 November and will close on Thursday 4 November. The final offering price of the shares will be determined by the PPC board of directors, after the completion of the process of the private placement and will be common for all investors that will participate in the share capital increase through the combined offer.
The distribution of shares in the public subscription and the private placement will be determined at the end of the process depending on demand. Priority will be given to existing shareholders, based on the share register of November 2nd.
Two state-backed funds, which hold a combined 51% in PPC, have said they plan to reduce their stake to a blocking minority by not taking part in the offering to allow more private investors to step in and boost the free float for the utility.
PPC has said it will use the proceeds to ramp up its renewable energy capacity as it switches off its coal plants, part of Greece’s binding plan to cut it carbon footprint in line with the Paris agreement for lower greenhouse emissions.
The shift to renewables is also expected to boost PPC’s operating profit to €1.7 billion by 2026 from nearly €900 million last year.