Infinis share price flat following ₤234 million IPO

Majority owner Terra Firma prices shares at 260.00p apiece

Infinis share price flat following ₤234 million IPO Friday November 15: Renewable energy generator Infinis Energy (LON:INFI) today priced its initial public offering on the London Stock Exchange at 260.00p, the bottom of its original range. As of 09.50 UTC the shares had barely edged up, gaining by 0.75p to 260.75p.

Infinis, majority owned by private equity group Terra Firma, operates 147 power generating plants across the UK. At the floatation price of 260.00p apiece for shares, the company will have a market capitalisation of about ₤780 million. Terra Firma will raise ₤234 million from the IPO, reducing its holding in the company to 69 percent as no new shares have been issued. The amount raised could increase to ₤269.1 million if an overallotment option, whereby the size of the floatation can be increased by 15 percent if demand is strong, is exercised.

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Retail investors will receive the first ₤998.40 worth of stock they applied for, while those who put in orders for higher amounts will receive 55 percent of what they were looking to get, with an upper limit at 10,749 shares.

Deutsche Bank, Barclays and RBC Capital Markets acted as joint global coordinators and joint bookrunners on the IPO. The banks will receive a fee of 1.5 percent of the offer size, as well as a possible extra discretionary fee of 1.5 percent.

Ian Marchant, chairman of Infinis, said: “We are pleased to welcome both institutional and retail investors as new shareholders of Infinis Energy, the leading independent renewable energy generator in the UK. The success of this IPO represents a strong endorsement of the quality of the company and its strong prospects for further profitable growth. I look forward to working with the company and its various stakeholders to deliver sustainable energy, profits and dividends in the years to come.”

Infinis is the third-largest generator of green energy in the UK, with a market share of 7.3 percent. The company’s facilities include an onshore wind farm, gas generators and a hydro operation.

Eric Machiels, chief executive officer of Infinis, said today that the company is happy with the level of interest it has seen from investors. “I look forward with confidence to delivering on the dividend and growth targets communicated to our shareholders,” Machiels said. The company announced it expects to declare a target dividend of ₤55 million in 2015, the first full fiscal year following the IPO. Over the last three years Infinis’ earnings before interest, tax, depreciation and amortisation (EBITDA) has increased from ₤100 million in 2011 to ₤125 million in March 2013.

Infinis used to be part of Waste Recycling Group, which was acquired by Terra Firma for ₤530 million in 2003.

As of 10.43 UTC buy Infinis shares at 261.25p.

As of 10.43 UTC sell Infinis shares at 261.00p.

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Prices can go up and down meaning you can get back less than you invest. This is not advice. Dealing services provided by Hargreaves Lansdown.

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