Portuguese renewables company Greenvolt intends to acquire Profit Energy, an engineering company specialising in the development of energy efficiency projects. The decision was announced after the company held an IPO that raised $177 million last week.
The plan was made public at the beginning of this week by Portugal’s Competition Authority, but no additional information about the purchase was disclosed.
According to the announcement, Profit Energy consists of Track Profit Energy Lda and its subsidiary Track Profit Energy II. The company focuses on solar photovoltaic systems and LED lighting and offers project development, engineering, procurement and construction.
Previously, Greenvolt announced its plans to grant new shares worth 56 million euros to the shareholders of V-Ridium, a Polish renewable energy firm, in exchange for its shares.
Greenvolt’s IPO signalled a growing interest in renewables across companies from Spain and Portugal. With the demand for green solutions hitting new highs and the ESG agenda becoming dominant among investors, renewables companies are tapping the market for lucrative funds.
Earlier this year, Spain’s Acciona said it was considering spinning off its renewable energy division for listing amid the European Union’s green transition.
Shares of Greenvolt, which runs five forest biomass-fuelled thermoelectric plants across Portugal, soared by 25 percent during its stock market debut. The growth was promoted by a surging demand from investors seeking a share in the booming renewables industry.
More than 700,000 shares of the company were sold on Euronext Lisbon, with the price 15.3% higher at EUR 4.99, after touching EUR 5.3 at the beginning of the trading session.
The IPO was the largest on the Portuguese stock exchange since 2014, valuing the company at above EUR 500 million. The funds will be used to fund Greenvolt’s expansion, including across European renewables markets. The company already announced its plans to invest more than EUR 1.8 billion by 2025 in solar photovoltaic and onshore wind projects.
Portugal is considered one of the world’s leaders in renewables. The mainland’s renewable power plants generated 11,338 GWh of electricity in the first three months of 2021, or 79.5% of the total.
The company’s project was substantial, and growth in renewable energy would go beyond Portugal and Spain, stated Joao Manso Neto, CEO of Greenvolt.