Chorus IPO brings in $112.5 million

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German solar and wind park operator Chorus Clean Energy AG has raised €100 million ($112.5 million) from its initial public offering, with company shares priced at €9.75 ($10.96) on their first day of trading on Wednesday.

The company’s current €9.75 share price on the Frankfurt Stock Exchange’s Prime Standard regulated market segment corresponded to its initial offer price.

Founded in 1998 and based in Neubiberg near Munich, the company manages nearly 70 solar and wind power plants in five European countries with an output of more than 250 MW. Chorus also offers institutional investors investment opportunities in renewable energy plants.

"The successful IPO is a milestone in the history of our company,” said Chorus CEO Holger Götze. “With the placement of the capital increase of €100 million we fully achieved our targets.”

Expressing optimism about the group’s prospects, Götze said the company would invest the proceeds in further growth. “For this purpose we have an extensive pipeline of wind and solar parks with more than 800 MW.”

As part of the IPO, Chorus placed a total of 12,157,020 shares, including an over-allotment, at an offer price of €9.75 per share. Of the placed shares, 10,256,411 were new shares from a capital increase, 314,911 was stock held by existing shareholders and an additional 1,585,698 shares originated from a share loan granted by existing shareholders in connection with an over-allotment. It will be returned with new shares from a further capital increase after the expiry of the stabilization period and if a greenshoe option granted to the underwriting banks is exercised. (A greenshoe, or over-allotment, option allows underwriters to sell investors more shares than originally planned by the issuer, which is normally done if demand proves higher than expected.) Based on the offer price, the total deal size of Chorus’ IPO amounts to some €119 million ($134 million) if the greenshoe option is fully exercised, which would put the company’s free float at around 86%.

Chorus’ solar and wind operations cover the entire investment cycle – from sourcing of assets through financial and legal due diligence to monitoring and divestiture.