A new unit that will be able to operate renewable and conventional power assets and pay dividends to shareholders is attempting to raise $400 million in an initial share sale as it launches into being.
The new unit, NRG Yield Inc.—of NRG Energy Inc. filed its registration statement with the US Securities and Exchange Commission on June sixth for an initial public offering (IPO).
NRG Yield Inc., plans to have its shares listed on the New York Stock Exchange (NYSE: NYLD), though so far they are keeping a tight leash on expected share volumes and prices, according to Bloomberg.
The brainchild of NRG Energy Inc. (NRG)—the largest independent electricity generator in the US--NYLD plans to acquire solar, wind and gas-fired generating assets and “pay a consistent and growing cash dividend” to shareholders.
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NYLD also has three natural gas-fired facilities, seven solar power plants (utility scale), one wind far and two solar energy distribution systems.
NRG will hold a majority interest in NYLD and its assets, and its plugging this new move as “a premier company for investors seeking stable and growing dividend income from a diversified portfolio of lower-risk, high-quality assets,” according to company statement.
Once it raises its planned $400 million, it plans to invest in the construction of the California Valley Solar Ranch, in which it owns a 48.95% stake. The “ranch” is scheduled to be completed in the fourth quarter of this year.
NRG rose 5.7% percent to $27.10 at the close in New York on Friday in a 10-month record.
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By. Charles Kennedy of Oilprice.com
