This is a lot of valuation.
Iberdrola SA renewable energy unit Iberdrola Renovables said it has set the maximum price for the retail tranche of its initial public offering at 7 eur per share, at the top of the indicative price range of 5.3-7.0 eur per share.
Spain’s Iberdrola thinks renewable energy really has come of age — like $40 billion worth.
The big question: Is a company built around a power source (wind power) that makes up less than 1% of U.S. electricity generation really worth more than, say, Duke Energy, FPL Group, or NRG Energy?
The Spanish company, the world leader in renewable energy by capacity installed, has put a sticker price of 22 to 29.6 billion euros on the spinoff of its renewable energy business. That would make the new company, to be called Iberdrola Renovables (“renewables” in Spanish), the biggest pure-play renewable-energy listing in the world. The company will initially trade on the Madrid Stock Exchange, not in the U.S.