Energias de Portugal’s Renewables unit got off to a rocky start on its stock market debut last week, falling more than 4 per cent in initial trades as investors cashed in following the heavily subscribed initial public offering of shares.
EDP Renovaveis gained 158,000 new shareholders after selling 45m shares for a total 359 million euros.
Most of those were small shareholders who took up less than 500 of the new company’s shares apiece, given the strong demand for shares. Some criticised EDP for underpricing the IPO, given the demand, but CEO Antonio Mexia told journalists it was important for the company to go public at an attractive level that would help build a long-term relationship with shareholders. Mexia is Chairman of the new company.
By the end of the week, however, EDP Renovaveis shares had stabilized and were trading near their eight euros a share offer price.
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