Blackfinch Renewable IPO: How soon can you buy the shares?

3 min read | September 09, 2021 07:24 PM AEST | By Nidhi Gupta

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Blackfinch Renewable IPO: How soon can you buy the shares? — Image source: VideoFlow, Shutterstock.com

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Highlights

Blackfinch Renewable European Income Trust released a prospectus for its planned £300 million-initial public offering.
The company also intends to seek admission of its ordinary shares to the premium-listing segment of the FCA.
It has appointed Barclays Bank Plc as global coordinator and bookrunner and Howard Kennedy Corporate Services LLP as the sponsor.

Blackfinch Renewable European Income Trust Plc (BRET) released the prospectus for its planned £300 million-initial public offering (IPO) for trading on the main market of the London Stock Exchange (LSE). BRET operates as a new closed-end investment trust engaged in investing in Europe-based renewable energy infrastructure assets.

Blackfinch Renewable European Income Trust appointed Blackfinch, the UK-based award-winning investments specialist firm, as its investment manager. The company appointed Barclays Plc (LON: BARC) as global coordinator and bookrunner and Howard Kennedy Corporate Services LLP as the sponsor.

BRET would be eligible for the LSE’s Green Economy Mark that recognises firms generating 50% or more of their annual revenues from products and services contributing to the green economy. It also intends to seek admission of its ordinary shares to the FCA’s premium listing.

Blackfinch Renewable European Income Trust IPO plans

Blackfinch Renewable plans to issue up to 300 million ordinary shares, each priced at £1 to raise £300 million in total. The offering that opened on 7 September is slated to close on 30 September 2021, and the results will be unveiled on 1 October 2021. The company also intends to run a placing programme, which will enable Blackfinch Renewable to issue additional shares for the next 12 months.

Seed asset details

Blackfinch announced that it has £232 million seed assets for acquisition, including 21 Italy-based, construction-ready solar sites and two UK-based assets, totalling more than 300 MWp.

BRET plans dividend yield in the range of 1.0% to 3.0% based on the Initial Issue price for the first financial year (ending 30 June 2022), 5.0% to 5.5% for the second year ending 30 June 2023, and thereafter a dividend yield of 6.0% per year. The company announced that all dividends would be paid quarterly in equal instalments.

BRET’s focus areas

BRET will focus on less crowded European markets, including Poland, Portugal, Austria, Hungary, the Czech Republic, and the UK. The company plans to initially focus on hydro, wind, and solar investments and a secondary focus on hydrogen, storage, and central district heating assets. The company’s business is in line with the EU’s renewable energy guidance and goals. Thus the structural undersupply of cleaner energy in the region presents a compelling investment opportunity for the company for the future.

Bottom Line

Given the boom surrounding renewable energy to meet net-zero carbon emissions and adopt cleaner energy technologies, BRET IPO stands to benefit by capitalising on the current momentum. Furthermore, as the global economy transitions to sustainable energy resources, the company’s investments in cleaner energy solutions can offer a strong return to investors.

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