Friday 6 December 2019 11:33 am

New Octopus Renewables trust smashes target in £350m float

Octopus Renewables’ new infrastructure trust smashed investor expectations this morning, successfully raising £100m more than its original target of £250m.

The £350m launch makes the launch the second biggest initial public offering for an investment company this year.

Read more: Octopus launches new renewables trust

The net proceeds of the opening issue after costs will be £343m, which the company will invest in a portfolio of renewable energy assets in Europe and Australia comprising onshore wind farms and solar parks.

The company said: “Demand for the first issue significantly exceeded both the target issue size and the maximum issue size, and accordingly applications have been scaled back.”

Commenting on the launch, Philip Austin, the trust’s chair, said: “We are delighted with the response to our IPO, with demand significantly exceeding our target fundraise.

“We look forward to welcoming a broad range of investors to our register, including some of the UK’s leading institutions as well as a strong base of retail investors.”

The trust has forecast a three per cent return for the first year of trading, which will rise to seven to eight per cent thereafter.

Head of Octopus Renewables Matt Setchell said: “We look forward to increasing renewable infrastructure both in the UK and internationally and helping to mitigate climate change which is vital for us and future generations.

Read more: Octopus eyes Co-Op Energy amid shifting landscape for suppliers

“The listing is testament to strong institutional and retail investor interest not just in returns but also in making a meaningful impact with their investments.”