French energy group EDF has announced that it plans to launch an Initial Public Offering (IPO) for its Belgian subsidiary EDF Luminus on the regulated market of Euronext Brussels. EDF currently owns 37.7% of the share capital of EDF Luminus.
The offer will consist of a public offer in Belgium to retail investors and a private placement to institutional investors in Belgium and abroad. It is expected to consist of a sale of existing ordinary shares by the current co-shareholders of EDF Group. A greenshoe of up to 15% of the initial offering is also foreseen and is expected to consist of existing ordinary shares offered by EDF Belgium.
The IPO is subject to the approval of the Belgian Financial Services and Market Authority (FSMA) and will depend on market conditions; the price range as well as other details of the offering will be published in the Belgian financial press, when the offering period commences.
EDF Luminus is a major energy company in Belgium, active throughout the whole electricity value chain with a power generation capacity of 1,990 MW (around 10% of the total installed capacity in Belgium) generating 5 TWh in 2014 (61% from gas, 26% from nuclear and 13% from wind and hydropower). The company is also developing new wind projects that should reach 400 MW by 2018. EDF Luminus is also the second largest energy supplier in Belgium, with 1.8 million of connection points, a 20% market share in electricity and an 18% market share in gas.