RWE’s Innogy Said to Plan to File for $2.2 Billion IPO Next Week

(Bloomberg) -- Innogy SE, the renewables, grid and retail business being split out of German utility RWE AG, will announce plans for an initial public offering to raise about 2 billion euros ($2.2 billion) as soon as Monday, people familiar with the matter said.

The Essen-based company will publish its intention to float at the beginning of next week, the people said, asking not to be named because the deliberations are private. RWE is planning to float a 10 percent stake in the IPO and it’s also considering a secondary share offering and the amount raised could increase, the people said.

A spokeswoman for Innogy declined to comment.

RWE, Germany’s second biggest utility, split its renewable-energy unit, bundled with its grids and retail business, from the rest of the business in April. The company said at the time it planned to sell shares in the new unit by year-end. German power companies are separating conventional plants from their green-energy initiatives in reaction to the government’s shift toward wind and solar generation. The policy has hurt profitability at traditional utilities and driven down wholesale energy prices.

EON SE, RWE’s larger rival, has said it will list its conventional power-generation business Uniper SE on Monday in Frankfurt.