(Alliance News) - NextEnergy Renewables Ltd on Monday set out details for its London Main Market listing, where it is hoping to raise GBP300 million.
The company, an investment firm focused on private renewables and energy transition infrastructure, is seeking to raise at least GBP300 million via an initial placing, offer for subscription and intermediaries offer, with flexibility to raise up to GBP500 million. NextEnergy will issue 300 million shares at 100 pence each and expects to start trading on March 10.
The company said it targeting annual total returns between 9% and 11% and is eyeing a dividend yield of 5.5 pence for the year ending December 31, 2022. Thereafter, its payout will grow "progressively".
NextEnergy Renewables added: "NREN's investment objective is to provide investors with regular income and capital appreciation. An investment in the company will enable investors to gain exposure to renewable energy and energy transition assets, technologies and projects through investments made by the company in private investment vehicles, which are not widely accessible to public market investors, managed by the NextEnergy Capital Group and other high performing managers.
"The company will also seek to make direct investments in renewable energy and energy transition assets, projects and technologies, including by way of co-investments."
NextEnergy Renewables said JP Morgan Cazenove will act as global coordinator and also joint bookrunner, alongside Kempen & Co.
It will be managed by NextEnergy Capital IM Ltd, which has about USD2.3 billion in renewable energy focused assets under management.
NextEnergy Capital also manages London-listed NextEnergy Solar Fund Ltd, which listed in April 2014. At September 30, Solar Fund reported net asset value per share of 99.6p, up from 99.0p at March-end. For the half year, the NAV total return was 4.1%.
NextEnergy also runs three private environmental, social & corporate governance funds - which are focused on investing in solar power plants.
By Paul McGowan; paulmcgowan@alliancenews.com
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NextEnergy Solar (NESF)