Power utility PPC’s equity capital raise, whose ongoing book building process ends tomorrow, has already achieved its target, a 1.35 billion-euro sum with an upper share price of 9 euros, the sum of offers greatly exceeding this sum, and now finds itself faced with the favorable predicament of having to decide which of the more than ten participating international major-scale funds will be given the biggest share packages.
Yesterday’s requests were worth a total of 3.2 billion euros, taking the procedure’s total amount of offers made so far to four times the 1.35 billion-euro target, which would have been inconceivable just a couple of years back.
The major international funds have submitted requests for share packages each worth over 100 million euros. PPC cannot satisfy them all and will have to decide which of these participants it considers most formidable and with long-term investment intentions. These will receive the share packages they have requested and the others will be given smaller stakes.
The equity capital raise will increase the stake of private investors from 34 percent to 66 percent and offer the corporation fresh capital for its enormous investment plan. PPC is striving to implement an ambitious 5 billion-euro investment plan by 2024.
The funds obviously see major investment returns over the next few years. PPC’s EBITDA is currently at 900 million euros but is forecast to rise to 1.73 billion euros by 2026 with net profit of 665 million euros and total turnover of 5.3 billion euros.