The largest debut since 2015: highlights of the Acciona Energía IPO

Acciona Energía, the renewable energy subsidiary of Acciona, debuted on the Madrid Stock Exchange yesterday with a starting price of € 26.73 per share and a stock market valuation of 8,800 million euros, figures set at the minimum of the indicative price range of the IPO.

A great starting point with a 7.33% increase and a valuation reaching 9,446 million euros

The company chaired by José Manuel Entrecanales has listed 17% of its stock, which represents an offering of 1,566 million euros, the largest IPO since Cellnex in 2015.

Source: CincoDías

The IPO (Initial Public Offering) has been aimed only at institutional investors, who have welcomed it with great enthusiasm. Investor demand, worth more than € 3.6 billion, was 2.4 times the size of the offer. The good performance of the underwriter banks, including JP Morgan, Morgan Stanley, Citi and Goldman Sachs, has thus ensured the success of the operation before the debut.

A key IPO for a declining renewable sector

It’s no secret that the Spanish renewable sector is going through very rough times. Decreasing figures and the cancellation of IPOs confirm the saturation of companies in the market. Companies such as Soltec, Grenergy and Solarpack have had annual losses of more than 30% in the Mercado Continuo. On the Ibex 35, Solaria has also lost 30% and Siemens Gamesa 14.5%.

Decreases on Wednesday’s session

Source:  elEconomista

On top of that, the uncertainty about the regulation of the electricity sector has contributed to the price of shares being at the lower part of the indicative price range. The Chairman of Acciona acknowledged this fact at the Shareholders’ Meeting held on Wednesday.

Experts expect a potential revaluation of Acciona of up to 25%

On the day before its debut on the stock market, Renta 4 began to hedge the company and presented a very positive outlook: a target price of 33.12 euros, which would represent a 25% revaluation and an overweight recommendation. Analysts see Acciona Energía as a great investment opportunity, a way to enter the renewable world through a company with experience and financial solvency.

Entrecanales is confident about the growth and consolidation of the company in the next 10 years. The IPO will allow them to get closer to their goals of tripling their capacity and becoming the world’s first independent 100% renewable energy company.