I.P.O. Values Innogy Unit of German Utility RWE Around $22 Billion

I.P.O. Values Innogy Unit of German Utility RWE Around $22 Billion

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Peter Terium, chief executive of the German utility RWE, rings the bell to start the first trading day for its renewable energy unit Innogy, at the Frankfurt Stock Exchange on Friday.

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Kai Pfaffenbach/Reuters

LONDON — Innogy, the renewable energy unit of the German utility company RWE, debuted on the stock market on Friday after it was valued at 20 billion euros, or about $22 billion, the largest initial public offering in Germany since 2000.

Innogy, which consists of the renewable, power grid and retail businesses of RWE, said it had priced its offering of 138.9 million shares on the Frankfurt Stock Exchange, about 23 percent of the company’s total shares, at €36 apiece, at the top end of its expected range.

The shares were little changed from the offering price in early trading.

“Investors’ interest in Innogy is pleasing,” Peter Terium, the RWE and Innogy chief executive, said in a news release. “We plan to capitalize on the tailwind of the I.P.O. to further strengthen our position as an innovative European energy company.”

About €2 billion of the €5 billion generated in the stock sale will go to Innogy to finance investment. About €3 billion will go to RWE.

After the offering, RWE still owns about three-quarters of Innogy, which employs about 40,000 people and posted revenue of €46 billion in the first six months of 2016.

Deutsche Bank and Goldman Sachs acted as joint global coordinators on the offering.

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