Capital Energy bows out of Spanish green IPO race

MADRID: Spanish wind and solar developer Capital Energy has decided against a potential market listing, put off by an expected glut of such deals and volatility among other stocks in the sector.

Spain's lofty targets to install wind farms and solar parks have caught the eyes of investors keen to deploy funds in a sector boosted by an international drive to cut planet-warming emissions.

Madrid-based Capital Energy, which says it has a portfolio of projects with more than 35 gigawatts of capacity, was among several companies expected to launch a listing in the coming months to finance such projects.

But after several months weighing options to raise funds, the company decided against the stock market, a spokesman said.

"Given the current volatility in the market around listed renewable energy companies and the foreseeable over-supply of stock market listings by other companies in the sector, now is not the right moment to list," the spokesman said.

It may still consider an IPO in the future, he added.

The company has secured enough financing from banks and investors to cover its needs for the next 18 months, and is in advanced talks to get up to 1 billion euros ($1.2 billion) more, he added.

Capital Energy hired Goldman Sachs and UBS to advise it on the potential share sale, people familiar with the matter have said. Goldman Sachs declined to comment. UBS could not immediately be reached for comment.

After heady rises in 2020, some clean energy stocks have flagged this year, partly linked to a rise in government bond yields taking some steam out of growth stocks.

Larger Spanish conglomerate Acciona plans to hive off and sell shares in its energy unit in the coming months, and oil and gas group Repsol wants to list or sell a stake in its low-carbon business.

Capital Energy currently operates one wind farm and one solar park, with a combined generation capacity of 64 megawatts.