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Acciona IPO wilts under green energy discount

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Acciona Windpower 1.5 MW wind turbine generators are seen on Tatanka Wind Farm as the coronavirus disease (COVID-19) outbreak continues in Brandt, South Dakota, U.S., October 27, 2020. REUTERS/Bing Guan - RC2DRJ9H7AMM

LONDON, June 18 (Reuters Breakingviews) - Spain’s Acciona (ANA.MC) IPO has blown a fuse. Late on Thursday, the Madrid-listed infrastructure company announced read more an indicative price range for the planned spinoff of its wind and solar unit. At the mid-point and including debt, the business is valued at 12.4 billion euros. That’s some 2 billion euros short of what deal advisors, including Citi, Morgan Stanley, JPMorgan and Goldman Sachs, had mooted .

A selloff read more in green energy stocks since January forms part of the reason for the discount, as does the Entrecanales family’s continued control. Assuming 2020 EBITDA of 859 million euros grows at 13% this year, Acciona Energía, as the spawn is known, would be valued at around 13 times forward EBITDA, below peers EDP Renováveis (EDPR.LS) and Orsted (ORSTED.CO), which trade at an average of about 16 times, according to Refinitiv data. Like its rivals, however, Acciona has an impressive track record and ambitious plans to nearly double its capacity to 20 gigawatts by 2025. That may lead to a longer-term power surge. (By Christopher Thompson)

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