INNOGY IPO

New Energy for Stock Market

Windenergie-Anhörung im Wirtschaftssausschuss
RWE's renewable energy unit Innogy is going public in the largest German IPO since 2000.
  • Why it matters

    Why it matters

    The flotation of Innogy on October 7 marks a huge strategic shift for energy giant RWE, which is hoping to combat debt, falling profits and regulatory costs in its old core business.

  • Facts

    Facts

    • Shares in Innogy, spun off from energy giant RWE, will be floated on October 7, with a predicted market capitalization of up to €20 billion.
    • Its parent company, RWE, has seen its share price collapse 70 percent in recent years. For the first time in decades, the company will pay no dividend this year.
    • Both RWE and rival E.ON are trying to quarantine their troubled core business—above all coal- and gas-fired power plants—from their healthier renewables and retail arms.
  • Audio

    Audio

  • Pdf

In August, posters appeared on billboards all over Germany, asking a single, stark question: “What would you do if you could start afresh?”

The question was posed by the energy company RWE. Now the second half of its campaign is going live, with colorful posters and TV and radio advertisements announcing its own fresh start. RWE is introducing its new subsidiary to German consumers and investors. The company will inherit the “clean” parts of its parent company’s business: renewable energy, networks and retail. “Energy is becoming Innogy,” goes the confident catchphrase.

For Peter Terium, RWE’s chief executive, Innogy’s spin-off marks a new era of freedom for the parent company, which has been battered by Chancellor Angela Merkel’s drive to wean Europe’s largest economy off fossil fuels by 2050. But for investors, too, the company’s strategic shift offers significant opportunities.

The flotation will take place on October 7. With a volume close to €5 billion, around $5.62 billion, it will be the biggest share issue in Germany since Infineon and Deutsche Post came to market in 2000.

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