German energy company RWE AG has earned a total of EUR 2.6 billion through the recently launched initial public offering (IPO) of its renewable energy spin-off innogy SE.
At the beginning of October, RWE had placed 70,707,000 innogy shares on the market from its holdings for approximately EUR 2.5 billion as part of the innogy IPO.
A total of 12,626,200 shares was allocated to investors via an over-allotment option as part of the IPO of innogy.
In connection with this over-allotment, RWE Downstream Beteiligungs GmbH had also granted a greenshoe option which was exercised on Thursday, 21 October, for 2,668,315 shares, or by about 21.1 percent, which terminates the stabilisation period.
By way of a greenshoe option, an existing shareholder enables the underwriting banks to purchase up to a predetermined maximum number of additional shares at their issue price after the initial issuance.
Following the exercise of the greenshoe option, RWE now holds a 76.8 percent stake in innogy.
RWE’s Supervisory Board approved the restructuring and setting up of the new subsidiary in December 2015.
Innogy SE comprises RWE’s renewables, grid and retail operations in Germany and abroad, while RWE AG is focusing on conventional electricity generation and energy trading.