NextEnergy Renewables has announced its intention to float on the London Stock Exchange through an initial public offering (IPO).
It is looking to raise up to £300 million through a placing, offer for subscription and intermediaries offer of ordinary shares, with the intention of investing this in a diversified portfolio of global private renewables and energy transition infrastructure opportunities.
The NextEnergy Renewables fund will provide the opportunity to immediately invest through its seed funding into NextPower III, the company’s latest fund targeting operational and new-build solar assets primarily backed by long-term PPAs, and in time will look to further diversify the portfolio through investment into both private platforms and direct investment through co-invested opportunities. It is expecting this to be equally weighted over time.
Anne Wade, chair of NextEnergy Renewables described this as allowing the company to offer "diversity in both asset class and jurisdiction which truly differentiates this from other offerings", with the company believing that the timing of the launch is "also very favourable as we look to capitalise on the supportive market backdrop with a large investible universe and strong growth outlook ahead".
NextEnergy Renewables is targeting total returns of 9-11% per annum, with a 5.5p per ordinary share target dividend yield for the first full financial year to 31 December 2022.
The announcement of its plans to float follows NextEnergy Solar Fund raising gross proceeds of £85.6 million in its IPO in 2014.
Last month, Foresight revealed plans to proceed with an IPO to support its growth strategy, which covers developing its existing platform, making further acquisitions and expanding and diversifying both geographically and into new areas of sustainable investment.