Skip to content
Eni discusses the launch of the renewable energy IPO in a turbulent market


Eni SpA is debating whether to proceed with the listing of its multi-billion dollar revolving arm or delay the launch of the deal amid market turmoil, people familiar with the matter have said.

Content of the article

(Bloomberg) – Eni SpA is debating whether to proceed with the listing of its multi-billion dollar revolving arm or delay the launch of the deal amid market turmoil, people with knowledge of the matter have said. .

Content of the article

The Italian oil giant is expected to decide in the coming days whether to proceed with the IPO in Milan of its Plénitude unit, the sources said, asking not to be identified as the information is private. Under the normal European trading calendar, it would have set a price range on Thursday.

Eni is now discussing with its advisers whether to accept a cheaper valuation or wait for a better environment later in the year, people say. Discussions with potential investors in recent days have revealed lingering disagreements over pricing, the people said.

State-controlled Eni was already considering tempering Plénitude’s valuation to around 7 billion euros ($7.4 billion), down from an earlier target of 10 billion euros, Bloomberg News reported last week. . In recent days, some fund managers have indicated they will only invest at a valuation below €7 billion, the sources said.

Content of the article

Abstaining could allow Eni to reach the desired valuation when the markets improve in a few months. The decision could also backfire if investor sentiment continues to deteriorate.

Deliberations are ongoing and Eni has made no final decision, the people said. A representative for Eni declined to comment.

Issuers have been forced to revise their expectations as inflation-fueled market turmoil, hawkish central banks and growing recession fears weigh on investors’ appetites. Industry De Nora SpA, a green hydrogen specialist that began taking orders for its IPO this week, also lowered its valuation from initial expectations to attract investors, Bloomberg News reported.

De Nora and Plénitude both target investors in green energy. The war in Ukraine has rocked global fossil fuel markets, prompting governments to push for more independence from Russian oil and gas supplies. Ambitious climate targets in Europe have also put renewable assets in the spotlight, with energy majors seeking to maximize returns from these companies.

financialpost