CEO says Eni's Plenitude will list once market conditions are favorable
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Plenitude Awaits Favorable Market Conditions for Milan Bourse Listing
Plenitude, the retail and renewable arm of Italian energy giant Eni, is poised for an initial public offering (IPO) on the Milan stock exchange as soon as market conditions allow, according to Chief Executive Stefano Goberti. The company's IPO plans were put on hold in 2022 due to the energy crisis triggered by Russia's invasion of Ukraine.
Eni subsequently initiated discussions with investors and secured a deal in December with Energy Infrastructure Partners (EIP), giving the Swiss fund a 7.6% stake in Plenitude through a reserved capital increase. Despite the deal, Plenitude's IPO aspirations remain unchanged.
Market Conditions Play a Crucial Role
Goberti emphasized the company’s readiness for listing but noted the necessity of favorable market conditions. "We are ready for the listing, obviously we have to verify the market conditions... When conditions are good, we will certainly go for the IPO," Goberti stated at a conference organized by EIP in Zurich. EIP's nearly 600 million euro investment values Plenitude at approximately 10 billion euros, including debt, and has earned the fund one seat on Plenitude's seven-member board.
"Their contribution has been very positive so far... they know the energy sector and financial market very well," Goberti remarked, reflecting positively on EIP's involvement.
Waiting for a More Receptive Market
To proceed with the IPO, Plenitude is waiting for decreased market volatility and a more receptive equity market. Goberti noted that while there have been signs of IPO activity globally and in Europe, the renewable energy sector remains cautious. "We have started to see some IPOs around the world and in Europe, but in our sector - related to renewables and energy transition - the sun is still pale, so let's wait for a slightly warmer sun and then we could certainly launch the listing," he explained.
Customer Base Expansion
Plenitude aims to grow its customer base from just over 10 million to a target of 11.5 million. While the primary focus is on organic growth, Goberti did not dismiss the possibility of acquiring a customer portfolio if a favorable opportunity arises.
