IPO volumes in the sector stand at USD 373m in 2024 YTD, this is down on USD 3.3bn seen last year.

Prior to the launch of Cox’s IPO, 2024 was set to be the worst year in a decade for utility and energy IPOs in EMEA, despite high global energy costs boosting the revenues of several providers.

Political uncertainty and a slowdown in the momentum of the global energy transition movement have introduced complexities, necessitating significant capital investment and strategic realignment, making IPOs less feasible in the short term, according to an S&P Global report.

Cox, which aims to raise EUR 230m, will likely be the largest energy deal this year and the largest since Premier Energy SRL’s IPO in May raised USD 153m.

This year is a far cry from 2021 and 2022, where IPO volumes reached USD 7.9bn and USD 8.7bn respectively. Dubai Electricity & Water Authority PJSC (USD 6.1bn), Spain’s Acciona Energia SA (USD 1.8bn) and Saudi Arabia’s ACWA Power Co (USD 1.2bn) were among the largest deals over that period.

While IPOs have been in the doldrums, follow-on volumes this year have been respectable at USD 10.1bn, mainly driven by the UK’s USD 9.2bn National Grid plc’s rights offering in June.

Meanwhile, E&U convertibles in EMEA collapsed with no sector deals priced in 2024, down from USD 561m last year, with investors in the asset class staying clear of the space in the current environment.

There remains uncertainty about E&U ECM activity going forward next year, following the election of Donald Trump in the US.

“There is still a growing appetite for environmentally sustainable investments. However, the US election will likely affect sentiment for renewables following Trump’s win,” one ECM source said.