Atrato Onsite to tap doubling in UK electricity demand via IPO
On-site renewable energy outfit Atrato Onsite Energy announced plans to pursue an initial public offering on the London Stock Exchange and take advantage of the expected doubling of UK electricity demand by 2050.
The closed-ended investment company was aiming to raise £150m which it would then invest primarily in behind-the-meter solar photovoltaic generation systems, located mainly on the roofs of commercial buildings.
Among its attractions, Atrato cited its "significantly" lower exposure to wholesale power prices in comparison to peers.
Its financial goal was to pay out an annualised dividend of 5.0p per share during its first two years after its flotation and to grow it progressively thereafter.
In part, it expected to be able to do that thanks to long-term, fixed-price power purchase agreements with indexed uplifts.
Atrato also said that it would target a total return of 8-10% in the first financial year following its initial public offering and over the medium-tern.
Origination premiums and a "conservative" use of financial leverage, which the company defined as less than 40% of gross asset value, was expected to deliver capital growth.
The company was also planning to conduct a placing and intermediaries offer alongside its offer for subscription.
It would then seek admission of the new shares to the premium segment of the LSE's main market.
Proceeds from the IPO would be deployed or committed in the 12 months following IPO, the company said.
Juliet Davenport, the founder of Good Energy, had been chosen as chairman.