MADRID (Reuters) - Cox Energy has hired Deutsche Bank for a potential market listing in which the Spanish renewable energy firm aims for a valuation of 500 million euros ($612.2 million), sources familiar with the matter said.
Madrid-based Cox, which was founded in 2014 to generate and sell electricity and gas in Europe and Latin America, now aims to raise funds to finance new projects through the potential listing, three sources said.
Chairman Enrique Riquelme is seeking to strike a deal which would value the overall company at 500 million euros, one of the sources said.
The decision to consider a stock market listing comes amid a revival of interest in green power in Spain after investors shunned the sector when the government cut subsidies in 2013 to balance a tariff deficit.
Across Europe, surging supplies of wind and solar power have forced down wholesale electricity prices prompting utility companies to shift toward renewables.
Cox has hired law firms Uria Menendez and Linklaters as advisers, the sources added. Spokespeople for Cox, Deutsche Bank, Uria Menendez and Linklaters declined to comment.
Cox owns solar plants in Spain and Portugal with potential capacity to supply 1,300 gigawatt hours per year. Last month, it signed a deal to supply fellow Spanish firm Audax Renovables with enough energy to power around 400,000 homes.
It has projects with a potential capacity of 5,000 megawatts in the pipeline, according to its website. It aims to start supplying electricity from its solar plants - none of which are yet in operation - during the next two years.
“The group needs to fund its investments. It has a very ambitious pipeline but it still doesn’t generate enough income,” one of the sources said.
Smaller renewable energy stocks were outperforming on Friday, while Madrid’s bourse fell slightly. Shares in Audax - which have surged 174 percent in the last month - gained 10 percent. Solar plant operator Solaria climbed 3.4 percent.
Reporting by Andres Gonzalez and Jose Elias Rodriguez; Writing by Isla Binnie; Editing by Sonya Dowsett and Jane Merriman