Portugal's Greenvolt launches IPO to fund expansion in renewables

LISBON (Reuters) – Portuguese biomass energy firm Greenvolt said on Thursday it planned to raise 150 million euros ($179 million) through a stock market listing to fund its expansion, including in European solar parks and wind farms.

Greenvolt, which is fully owned by Portuguese pulp producer Altri, said it would offer new shares to institutional investors in an initial public offering (IPO). The company aims to float a 25% stake.

“The IPO of Greenvolt will make its value visible … and will provide the company with capital independence to continue to fulfil its growth ambitions,” Chief Executive João Manso Neto said in a statement.

Greenvolt did not give a timeframe for the IPO.

Renewable energy companies in Spain and Portugal are lining up to tap the market for funds, with the industry becoming increasingly popular among investors worldwide as governments and corporations try to wean themselves off fossil fuels and stem climate change.

Greenvolt, which operates five forest biomass-fired thermoelectric plants in Portugal, said it planned to invest between 1.5 billion and 1.8 billion euros by 2025, aiming to develop 3.6 gigawatts (GW) of solar photovoltaic and onshore wind projects in Poland, Greece, Romania and Portugal.

It also wants to add 40 megawatts (MW) of capacity to its biomass portfolio per year.

In addition to the IPO, Greenvolt will grant new shares worth 56 million euros to the shareholders of Polish renewable energy firm V-Ridium in exchange for their company.

V-Ridium is a solar and onshore wind developer with a total potential pipeline in Poland, Greece, Italy and France of 2.7 GW, of which 1.3 GW is under construction.

Greenvolt expects its net profit will grow at a compound annual growth rate of 40% between 2021 and 2025, after booking a profit of 17.9 million euros in 2020.

($1 = 0.8383 euros)

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