EY analysis suggests last week’s ‘successful’ initial public offering (IPO) of RWE’s spin off renewables business Innogy, is a positive indicator for IPOs generally in the energy sector for the rest of the year.
Matt Rennie, EY Global Power & Utilities Transactions Leader told Power Engineering International, “The successful IPO of Innogy is reflective of a rebounding IPO market globally as we look to 2017, and earmarks a strong start not only for IPO’s in Europe, but for energy IPO’s generally.”
“This follows a period of slow activity – at US$79.4bn, January-September global IPO proceeds were 39 per cent lower than in the same period in 2015 and deal volumes (704) were down by 23% per cent. We are seeing a strong start to 4Q16, and expect that improving economic fundamentals, high valuations and lower volatility will support a positive IPO sentiment as we move into 2017.”
RWE debuted its Innogy business in Frankfurt last week, as it looks to respond to market forces that have severely impacted its profitability over the last seven years.
Germany’s largest listing in 16 years was also the biggest in Europe since the flotation of miner and commodities trader Glencore in 2011.
[bc_video account_id=”1214147015″ player_id=”4697982639001″ video_id=”5165685288001″ min_width=”320px”]