We advised the book-runners of the IPO with the largest number of subscribers in the history of the Baltics on the successful offering and listing of the shares on the main list of the Nasdaq Tallinn Stock Exchange. The Enefit Green offering is arranged by Swedbank, Nordea, and Citigroup.
An unprecedented number of retail investors
A total of 60,335 retail investors participated in the initial public offering (IPO) of the shares of the renewable energy company Enefit Green, exceeding the previous record multi-fold and establishing Enefit Green as a truly public company. The total volume of subscriptions was four times more than the base offering. To meet very high retail demand, the size of the IPO was increased from EUR 115 million to EUR 175 million. The shares will be admitted to trading on the Baltic Main List of the Nasdaq Tallinn Stock Exchange and the first trading day is October 21, 2021.
55% of the Offer Shares were allocated to retail investors and the remaining 45% to institutional investors. Due to the unprecedented number of investors participating in the offer, the share of investors subscribing to up to 1,000 shares in total demand was so large that it was additionally decided to distribute 5.5% of the excess volume to all retail investors who subscribed for more than 1,000 shares.
Historical transaction on the Baltic stock exchange
Mihkel Torim, Head of Swedbank’s Baltic and Finnish Investment Banking, and one of the arrangers of the offering, notes that it is a significant and historic transaction on the Baltic stock exchange: “Interest in Enefit Green’s IPO turned out to be exceptionally high and clearly exceeded expectations. With over 60,000 subscribers, Enefit Green is the IPO in the Baltics with the largest number of subscribers ever. The significant retail interest in the offering shows the development of the local community of investors in recent years and the clear wish of them to be part of the growth story of the local future-oriented company that Enefit Green is excellently providing. There was also high interest among institutional investors with Baltic pension funds as well as regional and international investment funds, including EBRD, participating in the offering.”
Aiming to double their renewable energy production potential
Enefit Green plans to use the proceeds of the offer to develop its wind and solar parks with a production capacity of up to 600 MW with a view to the coming years. With the support of the money raised during the share offer, it is planned to implement the company’s growth strategy and increase the renewable energy production capacity by 2.3 times to 1,100 megawatts by 2025.
Enefit Green is a renewable energy company that belongs to the group of Eesti Energia and owns a total of 22 wind farms in four markets – Estonia, Latvia, Lithuania, and Poland – as well as 38 solar power plants, 4 CHP plants, a pellet plant, and a hydroelectric power plant. The company produced a total of 1.35 terawatt-hours (TWh) of electricity in 2020. The company has grown into one of the leading and most versatile producers of green energy in the Baltic Sea region.
Our services and client team
In co-operation with leading law firm Shearman & Sterling, we advised the book-runners of the offering – Swedbank, Nordea, and Citigroup – throughout the IPO process on all legal matters related to the offering.
Our client team was led by counsel Kätlin Krisak who was supported by:
In Estonia: partners Kaupo Lepasepp and Paul Künnap, counsel Jane Eespõld, senior associates Britta Retel, Mirjam Vichmann, Triin Toom and Sandra Mikli, as well as associates Andra Grünberg and Krista Ševerev.
In Latvia: partner Lelde Lavina, senior associates Viktorija Smirnova-Cerkasa, Andris Vilisons, and Jorens Jaunozols, as well as associate Zane Akermane.
In Lithuania: partner Sergej Butov, and senior associates Julija Kirkiliene and Inga Macijauskaite.
More information Enefit Green.