(Updates with details)
LISBON, June 2 Energias de Portugal (EDP.LS)
priced its initial public offering of its renewable energy unit
at 8.0 euros per share on Monday, near the middle of the price
range of 7.4 euros to 8.9 euros initially established.
EDP said in a statement at that price, the IPO raised 1.57
billion euros for EDP Renewables, which is the world's fourth
largest wind power company.
The IPO of 25 percent of EDP Renewables received a strong
response. The tranche for institutional investors, representing
20 percent, was 6.1 times oversubscribed. The 5 percent sold to
the public was nearly 88 times oversubscribed.
The IPO is the largest in Europe so far this year, EDP has
said. The new shares will start trading on June 4.
With the IPO, EDP expects to harness alternative energy at
a time of record oil prices and has said it expects 67 percent
of its electricity production will come from alternative energy
by 2015, up from 39 percent currently.
EDP aims to reach installed wind power capacity at EDP
Renewables of 7,600 megawatts (MW) by 2010, up from 3,640 MW at
the end of 2007.
EDP has quickly built up its wind power business and it now
has wind parks in countries including Spain, Portugal, France
and Poland. In the United States, EDP bought Horizon Energy
from Goldman Sachs for $2.2 billion last year.
Underwriters for the IPO were Portuguese banks BES
Investimento, Caixa BI and Millennium bcp Investimento and
Morgan Stanley, UBS, Citigroup, Deutsche Bank, JP Morgan,
Merrill Lynch, Societe Generale and Santander.
(Reporting by Axel Bugge and Sergio Goncalves; Editing by