IC Power has launched its long-awaited initial public offering, setting terms for a potential $446.78m share sale.
The Peruvian power company will offer 25.9m shares in its base offering between $12 and $15 apiece on February 2, one banker involved in the transaction said. The IPO also has a green shoe option to sell a further 3.89m shares.
IC Power, which filed initial documentation with the Securities Exchange Commission (SEC) in August 2015, has since completed the acquisition of assets in Guatemala. The acquisition was a “diversity play” for IC Power, which led banks to push back IPO plans, a second source said. The company had to re-file financial documents with the SEC, not only delaying the deal, but effectively re-valuing IC Power’s stock offering, he said.
Lima-based IC Power bought the Guatemalan energy distribution assets, collectively known as Energuate, from private equity firm Actis for almost $600m including debt.
IC Power also holds a number of power purchase agreements (PPAs) through other multinational companies around the world. Early investor marketing found that potential accounts were drawn to the PPAs due to them being dollar-indexed, the second source said.
IC Power’s parent company, Kenon Holdings of Israel, also has a known track record in global power generation and distribution, the first source added, which piqued investor interest.
“The company is ready and the growth is there,” he said. “Ebitda has grown as well, so investors see this as a means to access the growing [power] generation market.”