(Updates with details)
LISBON, June 2 (Reuters) - Energias de Portugal (EDP.LS) priced its initial public offering of its renewable energy unit at 8.0 euros per share on Monday, near the middle of the price range of 7.4 euros to 8.9 euros initially established.
EDP said in a statement at that price, the IPO raised 1.57 billion euros for EDP Renewables, which is the world’s fourth largest wind power company.
The IPO of 25 percent of EDP Renewables received a strong response. The tranche for institutional investors, representing 20 percent, was 6.1 times oversubscribed. The 5 percent sold to the public was nearly 88 times oversubscribed.
The IPO is the largest in Europe so far this year, EDP has said. The new shares will start trading on June 4.
With the IPO, EDP expects to harness alternative energy at a time of record oil prices and has said it expects 67 percent of its electricity production will come from alternative energy by 2015, up from 39 percent currently.
EDP aims to reach installed wind power capacity at EDP Renewables of 7,600 megawatts (MW) by 2010, up from 3,640 MW at the end of 2007.
EDP has quickly built up its wind power business and it now has wind parks in countries including Spain, Portugal, France and Poland. In the United States, EDP bought Horizon Energy from Goldman Sachs for $2.2 billion last year.
Underwriters for the IPO were Portuguese banks BES Investimento, Caixa BI and Millennium bcp Investimento and Morgan Stanley, UBS, Citigroup, Deutsche Bank, JP Morgan, Merrill Lynch, Societe Generale and Santander. (Reporting by Axel Bugge and Sergio Goncalves; Editing by Anshuman Daga)