DGAP-News: Blue Elephant Energy AG / Key word(s): IPO
Blue Elephant Energy AG prepares for an IPO
2021-06-18 / 07:30
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Blue Elephant Energy AG prepares for an IPO
. Blue Elephant Energy AG ("Blue Elephant Energy", the "Company"), one of the fastest growing independent producers
of renewable energy in the fragmented European market, is planning an initial public offering ("IPO") on the
regulated market (Prime Standard) of the Frankfurt Stock Exchange in Q3 2021, subject to market conditions.
. Distinct, de-risked and highly scaleable business model built on the three pillars: superior project access, strict
investment discipline and excellent operations.
. Blue Elephant Energy benefits from a combined 70 years of experience of the management team and additional core
employees with a proven track record in the renewable energy industry and capital markets.
. Since its foundation in June 2016, Blue Elephant Energy has already built a portfolio of 61 solar parks and 13 wind
farms with a total contracted capacity of 1,107 MW (as at 31 March 2021) and a substantial project pipeline of a
further 1,671 MW (as at 31 March 2021).
. The Company has a demonstrated financial track record, generating revenues of EUR 82 million and an Adjusted EBITDA
of EUR 61 million (Adjusted EBITDA margin of 74%) in 2020. As one of the fastest growing independent power
producers of renewable energy, the Company has grown on average at an outstanding growth rate of c. 45% (CAGR)
between 2018 and 2020. The strong financial profile is further substantiated by Blue Elephant Energy's outlook for
2021, which foresees forecasted revenues of approx. EUR 100 million and an Adjusted EBITDA of approx. EUR 74
million.
. Clear ESG case as Blue Elephant Energy not only focuses on producing 100% clean energy, leveraging proven
technologies, but also combines this with environmental and social projects with a positive impact on local
communities.
. To implement the growth strategy, Blue Elephant Energy intends to issue new shares from a capital increase and is
targeting gross proceeds of approximately EUR 150 million. Except for granting over-allotment shares within a
customary greenshoe option, none of the existing shareholders intends to sell shares.
Hamburg, 18.06.2021 - Blue Elephant Energy (www.blueelephantenergy.com) announces its intention to float an IPO and to
list its shares on the regulated market (Prime Standard) of the Frankfurt Stock Exchange expected to be completed in
the third quarter of calendar year 2021, subject to market conditions.
Proven business model
The Company is an Independent Power Producer (IPP) operating in the renewable energy sector with a highly scaleable and
low-risk business model focusing on the acquisition and operation of solar parks and onshore wind parks. Blue Elephant
Energy operates in the so-called "downstream area" of the value chain of the renewable energy sector, benefiting from
highly visible revenue streams in the long term. It acquires de-risked renewable energy assets that are ready-to-build
with all material permits secured, under construction or already in operation. The Company's strategy rests on three
pillars: (1) superior project access based on long-standing relationships with developers and other industry players,
(2) strict investment discipline with in-house expertise to conduct business and technical due diligence and clear
investment criteria, and (3) excellent operations using online tools for remote diagnosis to ensure high availability
of renewable energy assets. The business model of Blue Elephant Energy further has a strong ESG aspect, producing power
from renewable sources, rounded off by environmental and social projects in communities associated with renewable
energy assets.
"Blue Elephant Energy is a strong and fast-growing renewable energy company that has established a proven economic
model and robust strategic position, as well as the ability to become one of the sector's leading players." says Felix
Goedhart, Founder and Chief Executive Officer (CEO) of Blue Elephant Energy, "It is with great enthusiasm that we
prepare this planned initial public offering, which will enable us to finance our ambitious growth targets and to
remain a leading independent player in the renewable energy markets. Our core team at Blue Elephant Energy consists of
highly experienced experts with an extensive network in the industry. All of them are shareholders in the Company and
drive our development as co-entrepreneurs."
An experienced team with a clear growth strategy and a strong track-record
Since its foundation in June 2016, Blue Elephant Energy has expanded its portfolio to 61 solar parks and 13 wind farms
with a total contracted capacity of 1,107 MW (as at 31 March 2021). The Company has built up its attractive and
diversified portfolio in eight different countries, demonstrating its ability to source and execute attractive
acquisition opportunities on a large scale in a fragmented market.
The leadership team driving this growth benefits from a combined 70 years of experience among management and core
employees. Some of the members of this leadership team developed Encavis AG between 2006 and 2015 from a small venture
capital firm into one of Europe's largest renewable energy IPPs. The Blue Elephant Energy team has extensive industry
expertise and networks that allow the Company to identify attractive acquisition opportunities at an early stage. The
in-house engineering expertise of the team is vital for successfully selecting attractive acquisition targets,
supervising construction activities and the operation of renewable energy assets.
"Our growth is based upon two pillars. The first pillar are projects which are offered to us via our long- standing
network. We cherry-pick those projects which offer the best risk-return ratio. This strategy has carried us this far
and we have been able to build a 1.1 GW portfolio since we started in mid-2016. In the future, we will also grow
through the recently introduced second pillar of formal cooperation agreements with project developers. We have secured
exclusive access to projects via these agreements. We aim to minimize exposure to development risks. Each agreement is
different but generally our partners have aligned interests and the largest part of their remuneration will only be
payable once the projects are ready to build. This avoids significant exposure to risks during the development phase,
while at the same time placing growth on broader shoulders." explains Tim Kallas, Chief Investment Officer (CIO) of
Blue Elephant Energy.
Dr. Gerd Weidenfeld, Chief Financial Officer (CFO) of the Company, adds: "Once built, our renewable energy assets
benefit from a long lifespan, providing us with a very high visibility of our future revenue streams. Over the next 15
years, we expect to generate 90% of revenues for the current portfolio from legally guaranteed feed-in-tariffs or
long-term power purchase agreements. We aim to achieve a global volume weighted average internal rate of return on
project-level of approximately 8% per annum."
As part of its growth strategy, Blue Elephant Energy recently entered into cooperation agreements with five project
developers, providing the Company with exclusive access to attractive solar parks being developed by these partners.
Longstanding relationships with project developers generally result in a high rate of repeat business. On that basis,
the Company has already built a large, substantiated and highly visible project pipeline of 1,671 MW (as at 31 March
2021) in addition to the already contracted portfolio of 1,107 MW (as at 31 March 2021).
"The project pipeline consists entirely of solar parks, which offer a very attractive risk/reward ratio. We intend to
maintain a proportion of about 80% of solar assets in the portfolio, by opportunistically acquiring wind farms already
in operation. We consider wind farms an important addition, providing further diversification." comments Goedhart.
"Further elements of our growth strategy are geographical diversification and new technologies such as storage and
hydrogen."
In addition to regularly reviewing investment opportunities in the current markets in Germany, the Netherlands, Italy,
Spain, France, Greece, Chile, and the Dominican Republic, Blue Elephant Energy also selectively screens investments in
other locations with highly attractive risk/ return profiles. These include growth and niche markets in Europe, South
America, the Caribbean, Asia-Pacific and North-America.
While the Company's disciplined investment approach is currently focused on solar and onshore wind assets for the
generation of renewable energy, it is also monitoring new technologies such as energy storage and green hydrogen.
Provided these investment areas offer attractive risk/return profiles, the Company may expand its investment strategy
accordingly.
A larger proportion of overall higher demand for electricity drives renewable energy market growth
The energy transition is a pathway toward transformation of the global energy sector from fossil-based to zero-carbon.
It is the driver for the structurally growing market for renewable energies, with a growing share of renewables in an
expanding overall energy market.
This transition is driven by corporate renewable Power Purchase Agreements ("PPAs") and regulatory developments like (MORE TO FOLLOW) Dow Jones Newswires
June 18, 2021 01:31 ET (05:31 GMT)
