Milton Financials: Enel SpA values its green unit at as much as $14.8 billion ahead of IPO.

Oct. 15, 2010 - PRLog -- According to recent reports, Italy’s largest utility has valued its renewable energy unit at as much as €10.5 billion ($14.8 billion) as it prepares for what is to be Europe’s largest IPO since 2007 to pay down debt.

Shares of the new Enel Green Power SpA are selling at €1.8 to €2.1 per share in Milan according to a recent stock exchange statement. Enel hopes to raise as much as $4.8 billion (€3.4 billion) selling 32.5% of the company’s shares.

“The range is reasonable, at under €2 we will definitely buy,” said Patrizio Pazzaglia, head fund manager at Bank Insinger de Beaufort NV in Rome told Milton Financials sources. “Utilities can be a good investment at a time when interest rates are so low.”


The Rome based company is hoping to attract investors by offering above average dividends for the sector. According to Fluvio Conti, Enel’s CEO the renewables unit will pay 30% of net income to investors. Investors are cautious of the sector after money was lost on Spain’s Iberdrola Renovables SA in 2007 and Portugal’s EDP Renovaveis SA in 2008.


Unlike Spain and Portugal’s endeavours which relied heavily on wind power, Enel Green Power is to get 44% of its power capacity from hydroelectric plants scattered from Bolzano in Italy’s Alps to Potenza in the country’s south. Around 41% of its total generation will come from wind and 135 from geothermal sources, Milton Financial was told.

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