Saturday, October 8, 2016

Course fire works for the RWE green energy subsidiary Innogy remains – THE WORLD

date: 07:17 PM | Reading time: 4 minutes

the first note for shares of the energy group is 37,30 Euro. The paper falls in the course and closes at the issue price of 36 Euro

Ffor the of the energy transition-hit suppliers, the trees do not grow even after their split-up in the sky. RWE’s green energy subsidiary Innogy, had on Friday restrained debut on the Frankfurt stock exchange. Temporarily, the stock slipped even below the issue price of 36 euros, with the Innogy his ways in the face of strong demand, according to the papers fully maxed out. Innogy’s chief Executive Peter Terium defended the move: “We are very, very satisfied. This is good for the Fund of Innogy, which is good for the Fund of RWE," he told the Reuters news Agency in Frankfurt. The RWE share

With five billion Innogy is the largest IPO in Germany since the year 2000. At that time, the Post and Infineon had collected more than six billion euros. At the issue price Innogy is worth 20 billion euros and is regarded as a hot contender for the catchment in the value index, the MDax, in the course of this year. The highly indebted RWE comes in the leading index, the Dax, to be less than nine billion.

The proceeds Innogy and RWE share. “Two billion is a very substantial contribution to our 6,5-billion-Euro investment plan”, said Terium, who had extensively heard the heavy exchange bell. With the money he wants to focus on expanding the distribution networks, which were the “backbone of the energy transition”. “RWE has a couple of billion on the high edge. You might need this," said the Dutchman, who was up to the IPO, RWE-chief. Because the negotiations with the Federal government on the implementation of the nuclear phase-out run. “We are hedged now.”

But experts point out that the growth prospects of Innogy with green power, electricity and gas networks and distribution are limited. The same is true for the E. on power plant, a subsidiary of Uniper, the is since mid-September on the stock exchange. The biggest profit earner of Innogy of the electricity and Gas networks. The state promised returns are decreasing as in the case of wind energy, Innogy, the renewable electricity. “Of Innogy stable business are to be expected, but no leaps in Growth,” said Thomas Deser, a portfolio Manager at Union Investment.

Therefore had Innogy and the investment bankers, the share of the RWE subsidiary also marketed as the dividend title – with success. Investment funds, pension funds and other large investors had ordered shares for significantly more than ten billion Euro, most of them from the United States and the United Kingdom. An Insider said, the issue was oversubscribed to EUR 36. The US asset Manager Blackrock had already said in advance that papers for 940 million euros to take off. 70 to 80 percent of the adjusted profit will be for this year be distributed – that’s a yield of 4.2 percent, as bankers do the math.

“The issue price was not ambitious from my point of view,” said Joachim von der Goltz, accompanied the IPO for the Swiss investment Bank Credit Suisse. “It was a question of the interests to be balanced between Innogy, RWE and the investors.” At times, the accompanying banks had to support the course. The leadership at the IPO had a Sachs Goldman and Deutsche Bank.

RWE holds after the IPO, at least 75 percent of Innogy. The group had also sold a part of the future of business, says the managing Director of the shareholder Association DSW, Thomas pike fishing. “RWE gets by Innogy access to fresh capital. Previously, none of RWE has given a dime, because it was unclear how much of that in the nuclear provisions flow." The group’s debt of 28 billion euros press. Add to this the billions of heavy loads from the nuclear phase-out and the brown coal open-cast mining.

Also, E. on intends to concentrate on green power, and had distributed in September, the power plant daughter Uniper cleaved, the shares to their own shareholders. The Uniper-share with 10,83 euros, not far above the first course of 10,02 Euro. Experts see the IPO’s of both energy suppliers still positive. “The exchange in Germany is moved by the major transactions this year, again considerably more in the focus of foreign investors,” said EY-IPO expert Martin Steinbach. German funds signed in the case of Innogy, just one-tenth of issuance volume.


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