Lithuania's bullish Ignitis Grupe sets IPO price range valuing company at up to €2.1bn

Lithuania's bullish Ignitis Grupe sets IPO price range valuing company at up to €2.1bn
By Linas Jegelevicius in Vilnius September 21, 2020

Lithuania's state-run energy group Ignitis Grupe (Ignitis Group) has set a price range of €22.5-€28 for its shares and global depository receipts ahead of its upcoming initial public offering (IPO).

The related prospectus has been approved by the Bank of Lithuania and has now been published on the company’s website, the group announced via the Nasdaq Vilnius Stock Exchange on September 21.

The offer is comprised of 20.902mn shares. Based on the group's share capital, the offered price corresponds to a market capitalisation of approximately €1.692bn-2.105bn, and the value of the shares to be listed could range from €470.3mn to €585.2mn.

The offering is open for subscription from noon on September 21 to 1pm (EEST) on October 1. The inclusion of the offers securities into the Main Trading List of Nasdaq Vilnius and the Official List of the London Stock Exchange (LSE) is expected to take place on or around October 7.

Set up by the finance ministry in late February, a working group concluded that Ignitis Grupe would need to attract around €5bn-6bn by 2030, therefore, an IPO would be the most logical way of attracting funds.

The company has engaged J.P Morgan Securities plc, Morgan Stanley & Co. International plc, Swedbank AB (in cooperation with Kepler Cheuvreux S.A.) and UBS Europe SE to act as joint global co-ordinators and joint bookrunners and BofA Securities Europe SA to act as a joint bookrunner.

The state of Lithuania owns 100% of Ignitis Grupe. The revenue generated by Ignitis in Estonia, Latvia, Finland and Poland soared by 52% y/y to €61.3mn in 1H20. Total revenue of Ignitis Group for the same period increased by 5.9% to €590.9mn.