Infinis eyes £930m valuation in London IPO

The float could bring nearly £300m in proceeds to Terra Firma, which is looking to sell up to 40% of the British renewables group.

Infinis today announced the expected price range for its upcoming IPO at between 260p and 310p per share, implying a market capitalisation of between £780 million (€922 million; $1.2 billion) and £930 million.

Definitive pricing and allocations will be announced on 15 November, in anticipation of the company’s admission on the London Stock Exchange on 20 November. The notice kicks off the offer for certain institutional investors and intermediaries.

Assuming the company hits the mid-range of the price and holding it is hoping to float, the listing could bring almost £300 million in gross proceeds to Monterey Capital II, an investment vehicle owned by Terra Firma’s Fund II. The offer comprises 90 million to 120 million shares, representing 30 to 40 percent of the business, while a further 15 percent could also be sold through over-allotment options.

Terra Firma’s stake in the company is expected to sit between 60 percent and 70 percent upon completion of the IPO, and could fall to 54 percent should over-allotment arrangements be fully exercised.

Based in Northampton, Infinis is the UK’s largest independent renewable energy producer. It is also the third-largest producer under the Renewable Obligation regime, the subsidy scheme designed by the country to help ramp up its non-fossils power generation.

The company was established in 2006 through a spin-out from Waste Recycling Group, which Terra Firma bought in 2003. The firm claims to have grown revenues by 19 percent, and EBITDA by 25 percent, on an annualised basis over the last three years.

The group now owns and operates a portfolio of 147 power plants across the country, representing a total of 621 megawatts (MW) of landfill gas, wind and hydroelectricity installed capacity. It has a further 600MW of wind projects under development.

Terra Firma announced its intention to float the business on 21 October this year, in what was seen as a bid to attract more investors into the $3 billion green energy fund it is reportedly looking to raise. The IPO comes three months after the firm divested Phoenix Natural Gas, Northern Ireland’s largest gas network, to Hastings Funds Management for between £600 million and £650 million.