LONDON, March 22 (Reuters) - Greencoat UK Wind, an investment fund focused on buying wind farms in Britain, has raised 260 million pounds ($394.7 million) and hit its maximum target in an oversubscribed flotation on the London Stock Exchange.
Greencoat, which had planned to raise at least 205 million pounds, said the proceeds will be used to buy six operational wind farms from utilities SSE and RWE.
It said that as a result of a significant oversubscription for its shares, SSE's investment had been scaled back to 10 million shares having previously indicated it would invest up to 43 million pounds in the stock.
"We are delighted at the response to our offer from private and institutional investors," said Chairman Tim Ingram.
"The listing provides us with the platform to build upon the initial portfolio of operational wind farms, taking advantage of the underlying growth we expect in the wind farm market," Ingram added.
Greencoat UK Wind, an infrastructure fund managed by Greencoat Capital, said it had placed 260 million shares at 100 pence per share.
The British government is backing Greencoat's flotation, investing 50 million pounds in a move which it said will help attract additional private investment into the renewable energy sector.
The stock is due to make its market debut on Wednesday March 27.