MILAN (Reuters) -Italy’s Eni said on Thursday it was postponing its plan to list its retail and renewables business, renamed Plenitude, on the Milan stock exchange due to market conditions. Eni, which owns 100% of Plenitude, said in a statement that despite a strong interest by investors, “the volatility and uncertainty currently affecting the markets required a further phase of monitoring.”
The energy group announced the potential listing of its energy transition unit on June 9. Since then the U.S. Federal Reserve and the Bank of England have raised interest rates, reducing investors’ appetite for risks.
Central banks’ tightening moves have come on top of the war in Ukraine and its negative impact on economic growth and inflation.
Eni did not specify whether it still plans to list the unit by the end of this year.
Plenitude combines electricity generation from renewables, the sale of electricity, gas and energy services to households and businesses, and a network of charging points for electric vehicles.
The unit recorded 4.4 billion euro ($4.7 billion) of sales and core earnings, excluding extraordinary items, of 212 million euros in the first quarter of this year.
Royal Bank of Canada calculated the unit could be valued at around 8.4 billion euros, including debt.
Despite heightened market volatility, Italian electrode maker De Nora said on Wednesday it had covered its books for its initial public offering on the Milan stock exchange next week.
Reporting by Francesca Landini and Federico Maccioni, editing by Gianluca Semeraro and David Evans
Source: Reuters
