NextEnergy Renewables set to seek £300m via London IPO

NextEnergy Renewables is seeking to raise £300m via a listing on the London Stock Exchange's main market.

The firm's vision is to increase the global supply of renewable energies through existing technologies while investing in the key energy transformation infrastructure of the future, including hydrogen power and battery storage.

Management was aiming for total annual returns of 9-11%, including the targeted dividend and capital appreciation.

"An investment in NREN will enable investors to gain exposure to a diversified portfolio of renewable energy projects and exciting energy transition infrastructure through investing in and alongside (by way of co-investment) private investment platforms managed by some of the world's leading renewable energy investment managers," NextEnergy Renewables said.

Investment opportunities would be sourced through NextEnergy Capital Group and other high performing managers' platforms, co-investments and direct acquisitions.

Among other highlightes, NextEnergy said that it could offer investors access to "exclusive" renewables and energy transition opportunities with long-term contracted revenue streams and upside potential.

The latter would accrue from a mix of portfolio optimisation, yield compression, and technological innovations.

The company would be managed by NextEnergy Capital IM Limited, a global specialist investment manager in the renewables energy sector, which has an "established track record", the company said.

NextEnergy was targeting a dividend per share of 5.5p for its first full financial year ending on 31 December 2022 and projected that it would grow progressively thereafter.

For the year from admission to trading to the end of 2021, the targeted payout per share was 3.0p.

A prospectus for the flotation was expected to be published in February.