Public Power Corporation was happy to see bids for its share capital increase top 3 billion euros from the first day of its book-building on Tuesday, with the target of €1.35 billion covered from the first hour, and at the high end of the price range, at 9 euros per share.
High demand is expected to continue until Thursday afternoon, when the book closes. Sources aware of the issue’s course say bids will likely exceed €4 billion.
Besides the CVC fund that has already sealed a deal for the acquisition of 10% of shares paying €350 million, another €70-90 million appears to have been offered by the European Bank for Reconstruction and Development (EBRD). A further €100 million will come from the state’s Hellenic Company of Assets and Participations, so that the so-called hyperfund retains a 34.12% stake in the utility and privileged minority rights in the company’s management.
There have also been bids ranging between €50 million and €150 million by major foreign institutionals such as Fidelity, Βlackrock, Helikon, Oakhill, Shroeders, Apollo, Bluecrest, Pictet, etc.
The distribution of shares will take place after the closing of the book, and since the price has now been fixed at €9/share the criterion will be the profile of each investor and their behavior toward the company’s stock to date. A 15% section of the issue will be handed to domestic private and institutional investors. The clearing of demand will be completed by November 10 and the new shares will be listed as of November 16.
PPC has therefore secured success in its share issue from the very first hour, with takings set to be a considerable source of funding for the utility’s ambitious investment plan of €8.4 billion toward strengthening PPC’s position in the renewable energy sources market within and outside the country. It will also reduce the state’s stake to a minority position, which will strengthen the company’s operation based on the principles of corporate governance, a dimension that the market seems to have appreciated.