Shares of Enel Green Power (EGPW.MI) fell on their debut yesterday, marking a disappointing day for one of the largest-ever IPOs in the cleantech sector.
EGP's parent company, Spanish power company Enel (ENEL.MI), had already cut the share price to EUR 1.6, to lure institutional investors to purchase up to a third of the renewable energy development unit. In doing so the company raised EUR 2.5 billion (US$3.5 billion) to put toward debt. But it was less than the EUR 3 billion hoped for.
Things got worse when the shares went public in Milan and Madrid and promptly lost 4% in value, dropping to EUR 1.53 before climbing back to around EUR 1.6 in Friday morning trading.
The IPO was a low note for the industry as a whole, ending a tough week that saw the future of clean energy policy in the U.S. threatened by mid-term elections that returned significant power to the Republican party.
To add insult to injury, as EGP's stocks floundered on the market, share prices for Coal India soared 40% in Mumbai.
According to Reuters coverage, "India, which has the world's fifth biggest coal reserves after the United States, Russia, China and Australia, is riding an economic boom that is thirsty for fuel."
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