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Highlights
- Atrato Onsite Energy is planning to list on the London Stock Exchange through an initial public offer (IPO).
- The investment trust aims to raise close to £150 million through its IPO.
- As per the company, investors can expect an annual dividend of 5p per share, taking the total return on investment in the range of 8% to 10%.
Renewable energy investment trust Atrato Onsite Energy is planning to list on the London Stock Exchange through an initial public offer (IPO). The investment trust aims to raise close to £150 million through its IPO, which is expected to launch in the last week of November, and it will be listed on the exchange under the ticker name “ROOF.”
Atrato Onsite Energy
Atrato Onsite Energy is run by an all-women board which have combined expertise of over 50 years in the renewable energy segment and has worked on more than 300 solar projects.
The company has set up an investment trust fund to invest in solar panels and other related infrastructures. It plans to install solar panels on roofs of factories, offices, warehouses, and other such buildings, which will help companies reduce their carbon footprint and promote sustainable growth. The solar panel setup will also reduce the energy bills for the companies and move one step forward in achieving the 2050 target of net-zero carbon emissions.
Atrato is also planning to set up a power purchase agreement with the tenants of the buildings to track power supply and avoid grid losses. As per the company, it has a pipeline of £300 million projects already in place. The project portfolio is expected to reduce 50,000 tons of carbon emissions every year.
The company stated that it would have a stable dividend pay-out policy backed by its investment in solar panels and associated infrastructure, and shareholders could expect an annual dividend of 5p per share, taking the total return on investment in the range of 8% to 10%. The company plans to use IPO proceeds to invest in new solar projects within 12 months from IPO.
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About Green Energy Sector
The UK government is committed to reducing carbon emissions and plans to achieve net-zero emissions by 2050. To achieve the target and promote sustainable development, the government was first to pass Climate Change Act in 2008, which is a legally binding act and requires it to prepare carbon budgets to track greenhouse emissions over the five-year period.
Competition from listed players
Let us have a look at 2 other FTSE listed clean energy stocks that could be a competitor to Atrato.
Good Energy Group Plc (LON:GOOD)- FTSE AIM listed company has a portfolio of wind and solar energy projects that provides clean energy to businesses. It is one of the first companies in the UK that provide 100% of its power from a renewable source. The company has topped the sustainability survey conducted by the “Which? Magazine” awarding the company with the highest score and new eco provide badge.
Good Energy Group Plc’s current market cap stands at £51.59 million as of 25 October 2021.
Eqtec Plc (LON: EQT)- The company operates in the waste-to-energy segment. It can provide sustainable clean energy from over 50 different types of waste using its gasification technology. The company sells its proprietary technology to other businesses and earns revenue. The demand for the company’s technology has been high in recent years as businesses shift towards clean and sustainable business operations. Eqtec Plc’s current market cap stands at £101.90 million as of 25 October 2021.
