Iberdrola’s Share Sale Draws €19 Billion in Investor Orders
(Bloomberg) -- Iberdrola SA’s capital increase attracted orders for about 3.8-times the stock available, suggesting robust appetite for European stock sales.
The Spanish energy firm raised about €5 billion ($5.9 billion) on Wednesday by selling more than 331 million new shares at €15.15 each, a 4.7% discount to its last closing price. It was Europe’s largest stock sale this year, according to data compiled by Bloomberg. The level of demand, which was disclosed in a company statement, represented roughly €19 billion of investor orders.
Nearly half the stock available was allocated to so-called long-only funds, people familiar with the matter said. The offering drew orders from index-tracking funds, said the people, asking not to be identified because the information is private.
In total, the transaction drew more than 150 orders from investors, with the 10 largest orders receiving about 60% of the stock available, one of the people said. A representative for Iberdrola declined to comment.
The accelerated placement follows a €2.2 billion raise by Belgium’s Elia Group SA earlier this year and a rights issue of roughly £7 billion ($9.5 billion) by the UK’s National Grid Plc in 2024, suggesting strong demand for offerings by energy and utility firms looking to bolster their power infrastructure in the face of rising electricity consumption.
Books for Iberdrola’s stock sale were quickly covered after the transaction was announced on Wednesday morning, according to terms seen by Bloomberg. Proceeds will go toward Iberdrola’s power networks and fueling the company’s expansion overseas, the company said.
JPMorgan Chase & Co., Bank of America Corp., Morgan Stanley and BNP Paribas worked on the offering.
(Updates with additional details, starting in third paragraph.)
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