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Sunny outlook for Spain’s first post-pandemic IPO

Sunny outlook for Spain’s first post-pandemic IPO

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MADRID: Spanish solar equipment maker Soltec has seen keen investor interest for a stock listing it hopes will benefit from global economic rebuilding after the coronavirus crisis, its chief executive said on Monday.

Soltec, which makes kits that help solar panels soak up more rays, said it had received enough non-binding orders, on a first day of meetings with investors on Friday, to fulfil a plan to raise up to 165 million euros ($194 million).

“We are optimistic because the book was covered on the first day,” Chief Executive Raul Morales told Reuters.

Targeting a price per share of 3.66 to 4.82 euros, Soltec wants to carry out Spain’s first listing since December 2019, when green power producer Grenergy GREG.MC made its debut.

Grenergy’s stock has recovered from the pandemic slump and is trading 43% higher than at the start of this year.

Soltec expects its shares to start trading around Oct. 29.

Its target price range could give it a market value of up to 440 million euros. It says it has around 9% of the global market in solar trackers which are produced in Spain and Brazil and help panels follow the movement of the sun.

Based in sun-drenched southern Spain, Soltec aims to build more solar plants of its own and was on the verge of a flotation before the pandemic, Morales said.

“We have to be prepared for when the recovery starts,” he said, adding the company wants to “capture these funds now, to be completely ready.”

Spain is due to receive a large chunk of the 750 billion euros in grants and loans that the European Union is offering countries hard hit by the coronavirus. Brussels wants the shift away from fossil fuels to be a focus of those investments.

“There is global consensus on decarbonisation and European Union funds are going to reactivate the renewable sector,” Morales said.

($1 = 0.8518 euros)

Source: reuters
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Anand Gupta Editor - EQ Int'l Media Network
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