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Acciona Receives US$10.4 Billion Valuation for Energy Unit

By Cas Biekmann | Thu, 07/01/2021 - 10:13

Spanish infrastructure Acciona aimed for a valuation of US$10.5 billion when listing its energy arm, Acciona Energía, on the Madrid stock market. The listing of the company, which operates in Mexico as well, listed on July 1. Despite some minor reservations about the deal price, the offering was received positively by Acciona's executives as its valuation went slightly below the goal by reaching US$10.4 billion.

Aiming to reach its own sustainability goals, the company plans to use the funding to construct new renewable energy projects. Boosted by a global presence throughout the US, Australia, Spain, and Chile, Acciona Energía has a sizeable Mexican portfolio as well. In Mexico, the company has worked both as an EPC as the owner of notable renewable energy projects such as the 306 MW Oaxaca II, II and IV complex and the 317MW Puerto Libertad solar park. Acciona sold its Windpower subsidiary to Germany´s Nordex in 2016 and subsequently became its biggest shareholder with a 29.9 percent stake. With their complementary technologies and Acciona’s American presence, the companies offer a particularly strong platform for wind development, which make up the majority of Acciona’s renewable portfolio.

To reach the desired valuation during its IPO, Acciona cut down the shares of Acciona Energía to US$31.70, the lowest in its initially projected range. The IPO included 49,387,588 shares, equaling 15 percent of the company, plus 15 percent of the over-allotment option. This put the total offering of Acciona Energía at 17.25 percent. Earlier plans considered listing close to 29 percent of the company, reported Reuters. Since the listing has been relatively succesful, the IPO became the largest that Spain has seen since 2015.

Whether Acciona will add capacity to its Mexican portfolio immediately remains to be seen. Even though renewable developers are still adding MWs of capacity to their portfolios based on projects-initiated years ago, industry experts say Mexico’s project development is hitting a slump. While Private companies have been successful in finding legal protection against government measures that do not favor their projects and instead favors state-owned utility CFE, the calm and stable environment needed to invest hundreds of millions of dollars in separate energy projects has deteriorated. Furthermore, Mexico still must solve other issues in states with high potential for wind projects, these include Tamaulipas, Coahuila, Nuevo Leon and Oaxaca. In these areas, transmission bottlenecks threaten the attractiveness of wind projects entirely. New transmission lines and other supporting infrastructure would alleviate much of these issues, however.

Last month, Acciona reported positive 1Q2021 results, Acciona, with US$2 billion approximate revenues, up 5.5 percent compared to 1Q2020. A significant part of the company’s growth remains its most profitable renewable energy subsidiary, which saw the Mexican San Carlos wind farm enter into operation.

The data used in this article was sourced from:  
Acciona, Reuters
Cas Biekmann Cas Biekmann Journalist and Industry Analyst