Abengoa Yield Prices Upsized IPO At $29/share, Said To Raise $720 Mln

(RTTNews) - Dividend growth-oriented company Abengoa Yield plc (ABY) on Thursday priced its upsized initial public offering of 24.85 million ordinary shares at $29.00 per share, above the estimated range. The offering is said to have raised gross proceeds of about $720 million. The company's shares are expected to begin trading on the NASDAQ Global Select Market on Friday under the ticker symbol "ABY."

The Brentford, the U.K.-based company had earlier revealed in an amended Form F-1 filing with the U.S. Securities and Exchange Commission on June 2 that it will sell 23.10 million ordinary shares at an estimated price range between $25.00 and $27.00 for expected proceeds of $690.7 million.

The selling shareholder has granted the underwriters a 30-day option to purchase up to an additional 3.73 million ordinary shares from an affiliate of its parent Spanish engineering and clean technology company Abengoa S.A., to cover over-allotments, if any. The offering is expected to close on June 18, subject to customary closing conditions. Abengoa Yield publicly filed an initial registration statement on Form F-1 with the SEC for a $600 million IPO on April 1, 2014. Abengoa Yield initially filed confidentially on February 2, 2014.

After the closing of the offering, the company said it will have an aggregate of 80 million shares outstanding, immediately valuing the company at about $2.32 billion.

Abengoa Yield said intends to distribute all of the net proceeds of the offering, less $30 million to strengthen its liquidity position, to Abengoa as part of the consideration payable to Abengoa for the transfer of assets to Abengoa Yield. Following the completion of the offering, Abengoa S.A. will indirectly hold about 71.1 percent of the voting power in Abengoa Yield. The company said it intends to pay a regular quarterly dividend to holders of its shares starting with the third quarter of 2014, with the initial quarterly dividend to be set at $0.2592 per share.

Abengoa Yield is a dividend growth-oriented company formed to serve as the primary vehicle through which Abengoa S.A. will own, manage and acquire renewable energy, conventional power and electric transmission lines and other contracted revenue-generating assets, initially focused on North America and South America, as well as Europe.

Citigroup and BofA Merrill Lynch are acting as global coordinators of the offering, while Canaccord Genuity, HSBC, RBC Capital Markets and Banco Santander are acting as joint book-running managers for the offering.