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To keep up with Eni it is important to report two interesting news (NYSE:NYSE: E). The group has announced this morning its intention to proceed with the initial public offering of Plenitude: the company’s shares will be in Euronext Milan next weeks. The offer will be dedicated to the general Italian public and also to private placement reserved for qualified investors, including foreigners. The free float required for the purposes of the listing will be made through the sale of shares by Eni. The process of, Eni specifies “it will attract new capital to Eni, maximizing the value of Plenitude and Eni’s stake and unlocking new resources to be allocated for the path of energy transition.“. According to rumors, the IPO should worry about 30% of Plenitude’s capital, and the company should be valued at about 10 billion euros.
As for the listing date, the goal was to complete the IPO by the end of June. The company’s plan also includes the creation of long-term value for shareholders, both through the appreciation of capital and through the distribution of dividends: the distribution of coupons will be set at 25% of consolidated net profit (from 2023).
Aside from the numbers, Eni’s goal “it will help millions of customers across Europe switch to sustainable energy. Partially selling the business will unlock significant value and accelerate its growth, helping Eni reduce the scope 3 emissions currently generated by our customers, a key step in achieving our net zero goal.“said Eni CEO Claudio Descalzi.
Development of Qatar
The Italian group is in collaboration with Exxon Mobil (XOM), TotalEnergies (TTE), Shell (SHEL) and ConocoPhillips (COP) for the expansion of North Field, the world’s largest liquefied gas field. Along with other major oil companies, Eni was chosen by Qatar as a partner in the nearly $ 30 billion expansion plan.
The project envisages expanding the field, which will strengthen Qatar’s position which will lead it to become the world’s largest exporter of liquefied gas and ensure long-term gas supply to Europe as the continent seeks alternatives to Russian gas. . This is especially good news for the European Union.
More will be known this weekend, as Qatar Energy, the state-controlled group, had announced that it would hold a press conference and a signing ceremony on Sunday. This can be a positive catalyst for Eni.
Conclusion
Plenitude’s IPO is well-priced for the market, although there could be additional benefits from Qatar’s development. At this stage, we remain neutral with the Italian major, but we will definitely continue to monitor future procedures.
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- Looking at the Russian TotalEnergies exhibition
- Eni: Comment on the results of the first quarter