LONDON, UK: Atrato Onsite Energy, a new closed-ended investment company established to invest in a diversified portfolio of onsite renewable energy assets, intends to launch an initial public offering (IPO).
Atrato Onsite Energy is seeking to raise target gross issue proceeds of £150 million through the issuance of new ordinary shares in the Company by way of a Placing, Offer for Subscription and Intermediaries Offer and will apply for those shares to be admitted to the Official List of the Financial Conduct Authority and to trading on the premium segment of the London Stock Exchange’s main market.
The Company is targeting an annualised dividend of 5 pence per share for the first and second financial years following the IPO and will seek to grow the dividend progressively thereafter. The Company will target an annual total return of 8 – 10 per cent in the first financial year following the IPO and over the medium term.
Atrato Onsite Energy expects to publish a prospectus on or around 1 November 2021 and to close the IPO by the end of November 2021. The Company will trade under the ticker “ROOF”.
Alvarium Securities Limited is acting as Global Co-Ordinator, Sole Bookrunner, and Intermediaries Offer Adviser to the Company.
The Company will seek to achieve its investment objectives by primarily investing in behind-the-meter solar photovoltaic (solar PV) generation systems and associated infrastructure, predominantly located on the roofs of commercial buildings.
These systems will be commercialised through long-term, indexed power purchase agreements with the occupiers of the industrial and commercial properties on which the assets are installed. The generation of green energy directly at the point of use brings economic savings, avoids grid losses, provides traceability of supply, enables the creation of additional renewable energy capacity and reduces greenhouse gas emissions.
Juliet Davenport OBE, Chair of Atrato Onsite Energy plc, commented: “The UK’s binding net zero emissions target in 2050 and the resulting future demand for green energy means that additional generation from low carbon sources such as rooftop solar is growing. The Company will play a leading role in providing new green power capacity, delivering businesses a dedicated clean energy supply at a low fixed cost.
The Atrato team have a proven track record in renewable energy investments and building infrastructure, which is why I’m very excited to be part of this compelling project as Chair. The Company is expected to receive the London Stock Exchange’s Green Economy Mark, providing a confidence that the fund will have a material contribution to the global green economy.”
Gurpreet Gujral CFA, Managing Director, Atrato commented: “Rooftop solar PV, and other onsite energy generation assets, have a number of unique and attractive features. These include allowing corporates to directly reduce their carbon footprint whilst reducing their energy bills. They can also provide investors with a stable income stream with limited exposure to the wholesale energy market.
We are excited to launch the first listed investment company with a dedicated onsite energy generation strategy. We look forward to deploying the net proceeds of the IPO into an identified pipeline of acquisition opportunities, totalling over £300 million, within 12 months from IPO. In the first financial year, the Company aims to deliver an annualised dividend of 5 pence per share, part of a target total return of 8-10 per cent.”
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