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To follow up with Eni is important to report two interesting news (NYSE:NYSE:E). The group announced this morning its intention to proceed with the initial public offering of Plenitude – the company’s shares will be on Euronext Milan in the coming weeks. The offer will be dedicated to the Italian general public and also to the private placement reserved for qualified investors, including foreign ones. The free float required for the purposes of the listing will be realized through the sale of shares by Eni. The process, Eni specifies “will attract new capital to Eni, maximizing the value of Plenitude and the stake owned by Eni and unlocking new resources to be allocated for the energy transition path“. According to the rumors, IPO should concern about 30% of Plenitude’s capital, and the company should be valued at around 10 billion euros.
As for the date of the listing, the goal was to complete the IPO by the end of June. The company’s plan also includes the creation of long-term value for shareholders, both through capital appreciation and through dividend distribution – coupon distribution is going to be set to 25% of the consolidated net profit (starting from 2023).
Aside from the numbers, Eni’s goal “will help millions of customers across Europe switching to sustainable energy. Partially selling the business will unlock significant value and accelerate its growth, helping Eni cut the Scope 3 emissions currently generated by our customers – a key step to achieving our net-zero target” said Eni’s CEO, Claudio Descalzi.
Qatar development
The Italian group is in partnership with Exxon Mobil (XOM), TotalEnergies (TTE), Shell (SHEL), and ConocoPhillips (COP) for the expansion of North Field, the largest liquefied gas field in the world. Along with the other oil majors, Eni was chosen by Qatar as a partner in the nearly $30 billion expansion plan.
The project plans to expand the field, which will strengthen Qatar’s position leading it to become the world’s largest exporter of liquefied gas and ensuring long-term gas supply to Europe as the continent seeks alternatives to Russian gas. This is especially good news for the European Union.
More will be known over the weekend, since Qatar Energy, it is the state-controlled group, had announced it would hold a press conference and signing ceremony on Sunday. This can be a positive catalyst for Eni.
Conclusion
Plenitude’s IPO is well priced by the market, though there could be extra positive upsides thanks to the Qatar development. At this stage, we remain neutral on the Italian major, but we will definitely continue to monitor future proceedings.
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