French renewables outfit Neoen has launched a €640m initial public offering to fund the expansion of its wind, solar and energy storage operations.
The IPO on the Euronext Paris exchange has an indicative price for shares of between €16 and €19 each, Neoen said.
The company says Impala would remain its majority shareholder, having agreed to subscribe for approximately €170m worth of shares.
Neoen added that it has secured three additional backers, with FCPI Capenergie 3, Fonds Strategique de Participations and Celeste Management planning to take up shares worth €17.5m, €90m and €25m, respectively.
Neoen chief executive Xavier Barbaro said it needed the funds to support projects totalling 7.4GW that are currently in development.
“Our initial public offering enables us to raise funds to finance the construction of these new projects and to pursue the rapid growth of our business,” he said.
“We are targeting total capacity in operation and under construction of at least 5GW by the end of 2021.”
The company currently has 2GW of capacity either in operation or under construction.
Barbaro added that the IPO investment showed a “powerful vote of confidence, from well-reputed players”.
Neoen has doubled in size in within two years, with assets in 15 countries including France, Australia, El Salvador, Zambia, Jamaica, Portugal, Mexico, Mozambique, Finland and Argentina.
The French offering is open until 15 October, with an international offering closing the next day. Trading of Neoen shares on Euronext Paris is expected to start on 17 October.