Enel poised for €4bn green IPO announcement

Italian energy giant Enel is reportedly poised to formally announce plans for an IPO for its renewable energy unit, Enel Green Power, on Monday.

According to reports from Reuters and the Financial Times, sources close to the company said Enel is expected to file IPO documents on Monday, with a view to completing a stock market listing for its renewable energy division by October.

The company is expected to raise around €4bn through the IPO, which is expected to be the largest European so far this year.

Sources said the company was also still considering the possibility of selling a minority stake in the business, with reports suggesting there has been interest in the unit from a number of Middle Eastern sovereign wealth funds, as well as Benetton family holding company Sintonia.

Enel is expected to use the cash raised through the IPO to help pay off some of its €45bn debt.

The renewable energy industry is likely to keep a close eye on how the company's IPO performs.

Enel Green Power is one of the largest renewable energy operators in southern Europe, boasting around 5.7GW of renewable energy capacity, primarily through solar farms in Italy and Spain.

The company also has a solid project pipeline and market watchers have observed that it could prove an attractive partner for government-backed companies from the Middle East and North Africa, which are keen to bolster their expertise in the solar energy market.