Iberdrola started a capital increase of € 5 billion (5.9 billion US dollars), the largest share sale in Europe this year to strengthen the investments in power grids and to promote the expansion of the USA and Great Britain.
The Spanish energy giant will carry out an accelerated book building offer, according to a regulatory registration on Wednesday. According to Bloomberg, the company has launched an indicative price guideline of € 15.10 per share. The size of the deal exceeds indicative investor interests.
Sales of stocks will strengthen the pivot point of Iberdrola in the direction of power grids, which make up the majority of the planned editions of the company based in Bilbao by 2026. The Spanish supply company will maintain its focus on the USA and Great Britain and represent the tariff framework conditions for transmission and sales activities in both markets.
The sales sale will also lead around 15 billion euros a year a year in the coming years, according to the supply company.
Iberdrola expects his regulated asset base to tripled to more than 90 billion euros in 2031 in 2031. While it will grow almost four times in the UK and in the United States almost the double in the United States will shrink to 3.5 billion euros on the home market of Spain.
The company sees Spain “low incentives for investments as well as operating and maintenance costs”.
The reliability of the Spanish power grid was also questioned after the nationwide power failure, in which millions of people without electricity were left behind at the end of April.
The Spanish market regulatory authority CNMC has proposed an increasing network gate to 6.46%below the level in other European countries. The supply lobby group Aelec, whose member Iberdrola is, said that the low returns could endanger investments in the country.
