French solar power firm Neoen eyes $734 million IPO

French solar power specialist Neoen has revealed plans to raise around US$734 million in an initial public offering (IPO) of its shares as it looks to raise funds for expansion.

The independent renewable energy company said the shares will be offered at between €16-19 ($18.4-21.8), with informal trading on the Euronext exchange to start on October 17, before its official debut on the Paris market two days later.

450 million new shares will be offered by Neoen, with about 190 million existing shares to be sold by two investment funds. Majority shareholder Impala will maintain its position by subscribing to around 170 million shares.

The IPO will give the company a market capitalisation of between $1.6-1.7 billion, according to chief executive Xavier Barbaro, who also revealed that the money raised would be used to finance renewable energy development projects in the next two to three years, but not for acquisitions.

Neoen currently has 2,000MW of renewable energy installed capacity and more than 1,000MW being financed, with plans to have more than 5,000MW installed or under construction by 2021.

Last year, the company partnered with Tesla to build and operate the world’s biggest lithium-ion battery at the site of its Hornsdale wind farm in South Australia.