Newly formed energy company REV Renewables plans $100m IPO
15:16, 20 January 2022
REV Renewables plans to raise $100m (£73.3m) through the sale of stock in a public offering, the company reported to the US Securities and Exchange Commission (SEC).
New York City-based REV Renewables did not disclose the number of shares it plans to offer or indicate price guidance for the potential IPO. Rev Renewables has applied to list its stock on the Nasdaq exchange under the ticker RVR.
Goldman Sachs, Morgan Stanley and RBC Capital Markets are acting as joint lead book-running managers, with BofA Securities, BMO Capital Markets, Citigroup, Evercore ISI and Wolfe|Nomura Alliance as joint-lead managers. BNP Paribas, East West Markets, ING, Mizuho Securities, Ramirez and Seibert Williams Shank are acting as co-managers.
The underwriting group will have the option to purchase an undisclosed number of additional shares, although specific option terms were not disclosed.
Newly formed company
Founded in October 2021, REV Renewables is majority-owned by privately held natural gas and renewable energy operating company LS Power, which controls 89.3% of REV Renewables.
REV Renewables was formed by the combination of seven LS Power solar and wind power generation companies, as well as battery storage assets, acquired at various times. REV Renewables was formed by LS Power specifically to accelerate its investment in renewable energy.
REV Renewables energy map - Photo: REV Renewables S-1 shelf registrationREV Renewables owns roughly 2.4 gigawatts of generation and storage capacity through its assets located throughout the US. REV Renewables reports 290 megawatts of battery storage assets, 1,642 megawatts of pumped storage hydropower assets, 35 megawatts of solar power assets and a 132-megawatt wind farm.
REV reports its combined portfolio is the largest deregulated energy storage portfolio in the US. Additionally, REV has a portfolio of renewable energy generation and storage projects in development.
Grid Solution, an investment subsidiary of South Korean renewable energy company SK E&S, has agreed to purchase $100m in PIPE securities in conjunction with REV Renewables’ IPO. SK E&S previously invested $300m in REV Renewables last year, in exchange for 10.7% of REV.
By extrapolating the financial performance of predecessor companies Quattro and Seneca Hydro, REV Renewables reports a $53.6m net loss on $73.5m in revenue through the nine months ending 30 September 2021.
For the comparable nine-month period in 2020, REV reports $386,000 in net income on $8.61m in revenue.
For the full-year 2020, REV Renewables reports a $7.74m net loss on $12.8m in revenue, versus $1.05m in net income on $$7.45m in revenue for the full year 2019.
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