Argentina's Impsa targets IPO
Impsa, the Argentine wind turbine manufacturer and renewable energy operator, is ready to launch an initial public offering (IPO) when conditions allow in the Brazilian and/or US financial markets, a senior executive tells Recharge.
“The company is ready because it has implemented all the governance mechanisms,” says José Luis Menghini, executive vice president of Impsa’s Brazilian subsidiary.
Impsa’s financial advisors prefer the US market, but Brazil could offer good results since it's where the company has significant commercial activity.
Menghini said a share sale is part of wider strategy to finance the company's investment plans and is complementary to raising capital through debt.
“But since everything is ready for an IPO, it's an interesting option now,” he says.
The company, based in the province of Mendoza in western Argentina, canceled planned IPOs in both 2009 and 2010 amid a downturn in markets following the global financial crisis.
Impsa fabricates both wind and hydroelectric turbines in Brazil where more than 80% of its assets are located. It also has a research center there. It also controls about 800MW in wind generation capacity in operation or under construction in Brazil, 115Mw in Uruguay and 155MW in Argentina
The company's reported $749m in 2013 revenue, down from $1bn in 2012.
In 2013, it concluded a corporate restructuring process in which all assets are held by Luxembourg-based Venti SA. These include 100% of Impsa – Argentina assets – and WPE, which controls assets in both Brazil and Uruguay.