Public Power Corporation (PPC) has announced the terms of the share offering that will reduce the Greek state’s 51% majority stake to a blocking minority.
PPC’s Board of Directors approved the issuing of 130 million to 150 million new shares, aiming to raise between 1.105 and 1.35 billion euros. The offering price will range between 8.5 and 9 euros per share. The offering will be made through a combination of public subscription and private placement.
The book of offers will open on 2 November and will close on 4 November. The final offering price of the shares will be determined by the PPC Board of Directors, after the completion of the process of the private placement and will be common for all investors that will participate in the share capital increase through the combined offer.
The distribution of shares in the public subscription and the private placement will be determined at the end of the process depending on demand. Priority will be given to existing shareholders.
Two state-backed funds, which hold a combined 51 % in PPC, said that they plan to reduce their stake to a blocking minority by not taking part in the offering to allow more private investors to step in and boost the free float for the utility.
PPC said it will use the proceeds to increase up its renewable energy capacity as it phases-off its coal -fired power plants, part of Greece’s plan to cut it carbon footprint in line with the Paris agreement for lower greenhouse emissions. The shift to renewables is also expected to boost PPC’s operating profit to 1.7 billion euros by 2026 from nearly 900 million euros last year.
