The IPO consists of an offering of up to c.20.9 million new shares in the form of shares and global depositary receipts representing shares, at a price range of EUR 22.50 to EUR 28.00 per security. It is expected the IPO will raise gross proceeds of between EUR 470.3 million to EUR 585.2 million for the Company and result in the Company having a market capitalisation of c. EUR 1.69 billion to EUR 2.11 billion. The offering involves an offer to institutional investors and an offer to retail investors in Lithuania, Latvia and Estonia. The Company intends to use the net proceeds from the offering to facilitate the Company's growth, including investments in its Networks segment (e.g. cabling, smart meters, digitisation etc.) and its Green Generation segment.
The Company plays a critical role for the Baltic region's energy security and decarbonisation goals. It is one of the key components to enabling the successful synchronisation of the Baltic states within the network system of continental Europe by 2025, which is intended to enhance the region's ability independently manage its electric system. As the top green generation capacity owner in Lithuania, the Ignitis Group is key to Lithuania's commitment to implementing EU climate and energy targets. The Ignitis Group is a key strategic investment for the Republic of Lithuania as a long-term stakeholder. The IPO represents a part-privatisation of Lithuania's energy sector, and the Republic of Lithuania will remain the controlling shareholder following the offering.
The Ashurst team was led by corporate partner Nicholas Holmes, with partner Stuart Rubin leading the US securities team. Nicholas and Stuart were assisted by counsel Jeffrey Johnson, senior associates Louise Chan and Maria McAlister and associates Jarvis Yau, Louise Johnson, Annie Fenton and Kseniia Samokhina. Partner Nicholas Gardner advised on UK tax matters, assisted by senior associate Sara Mardell. Partner Sharon Kim advised on US tax matters. Ashurst worked closely with Sorainen, who advised the Company on matters as to Lithuanian, Latvian and Estonian laws.
Commenting on the transaction, partner and head of ECM Nicholas Holmes said:
"We are delighted to be acting for AB "Ignitis grupė", a leading utility and renewable energy company in the Baltic region on its IPO in London and Vilnius. Another milestone in what has been a very busy year for us in ECM."
