Elia on track for best day ever on 2.2 billion-euro equity raise

Elia SA

07/03/2025 08:46

** Shares in Elia ELI.BR jump around 18% after the Belgian utility said it planned to raise about 2.2 billion euros ($2.38 billion) of equity and reported a beat on annual results

** The planned equity raise includes a 850 million euro private placement and a 1.35 billion euro rights issue, which is already 55% subscribed for

** The total value of the capital raise corresponds to nearly half of Elia's market capitalisation which stood at about 4.75 billion euros as of Thursday's close

** "The full-year 2024 operational results came far above our expectations and the increase in CAPEX come as a positive surprise. The main news however is the private placement and right issue announcement," analysts at KBC Securities brokerage say

** They add the stock has recently suffered value loss on "speculation on timing and size of capital raise"

** "This should relieve this pressure and push the shares up, despite the current uncertain market environment" - KBC Securities

** If gains hold, the stock will see its best day ever

($1 = 0.9226 euros)

 (Reporting by Mateusz Rabiega)

 ((mateusz.rabiega@thomsonreuters.com))