UPDATE 1-Enel prices renewable unit IPO at 1.6 euros/shr

* Enel to raise around 2.6 bln euros- source

* IPO over one time covered – source

* Institutionals subscribe 500 mln euros of offer-source
(Adds comments, background)

MILAN, Oct 29 (BestGrowthStock) – The initial public offering for
Enel Green Power, Europe’s biggest in three years, has been
priced at the low end of an offer range at 1.6 euros per share,
allowing Enel to net 2.6 billion euros, sources said on

Enel, Europe’s most-indebted utility, had hoped to raise at
least 3 billion euros from the sale of up to 32.5 percent of
EGP to cut borrowings and protect its credit rating.

“The overall demand was for 1.75 billion shares including
the greenshoe,” a source close to the matter said.

In its IPO prospectus Enel said it plans to sell 1.415
billion EGP shares in the base offer and up to 1.627 billion
shares if a greenshoe option is exercised.

The source said institutional investors had subscribed
shares for some 500 million euros.

Enel had cut the price range from a preliminary 1.9-2.4
euros to 1.8-2.1 euros per share to lure institutional
investors who were clamouring for a discount. On Thursday the
company said it would take offers from 1.6 euros per share.

On Thursday sources told Reuters Enel was aiming to
increase the size of the retail offer, now at a minimum of 15
percent of the total, towards a 50-50 split with institutional
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Enel declined to comment.

The final price of 1.6 euros per share values the unit at
around 8 billion euros, giving EGP an EV/EBITDA multiple of 8.5
times, based on estimated 2010 earnings.

Iberdrola trades at a EV/EBITDA multiple of 10.3, while EDP
Renewables trades at a multiple of 10.1, UBS research showed.

(Reporting by Stephen Jewkes in Milan and Alberto Sisto in
Rome; Editing by Bernard Orr)

UPDATE 1-Enel prices renewable unit IPO at 1.6 euros/shr