Iberdrola USA starts trading on NYSE with a market cap of $11.2 Bn

iberdrolaUSA

Iberdrola, Spain’s biggest electricity company, has completed the merger with the US firm UIL and the new group Avantgrid is now trading on the NYSE.

Shares in Iberdrola USA (81.5% of which is in the hands of Iberdrola and UIL owns the remaining 18.5%) began trading yesterday at 38,75€/share (310 million shares), registering a fall over the day of 6.7% to 36,12€/share (market capitalisation of $11.2 billion).

“Although Avantgrid’s market debut was tarnished with this share price drop, it was a day of overall losses (S&P down 1.5%). In any event, the stock’s market capitalisation is still around the $11.500 billion in our estimates (PER 2015e 19,8x),” Bankinter analysts said.

Avantgrid’s listing is the culmination of an operation which was announced in February. The merger has created a company which, according to 2014 figures, had a combined EBITDA of $2.014 billion (22% contributed by UIL and 78% by Iberdrola USA).

UIL currently trades with a market capitalisation of $2.200 billion (EV $4.400 billion) and EV/EBIDTA’15 multiples of 10.2x and PER’15 of 19.8x.