ENERGY FINANCE


ENERGY AS IPO


The rise of listings on stock exchanges have done for the capital market what the rise of money has done for trade. It makes it easy for third parties to join or leave a company and it makes it easy for companies to attract capital and get the company value determined by the market. The concept of stock exchanges i.e. public listings is very old. In 1602 Amsterdam had the first stock exchange of the world (just like it had the first public company and the first CDS -Credit Default Swap-) the same time. Listing energy facility investments is a huge capital tool, both by IPO -Initial Public Offering- or by -the less desired- reversed take over of existed already listed companies. As new energy investments always are about new projects and often are about new corporations, the rules of the old exchanges (like NYSE) are not adequate. Just like Nasdaq has done for the tech wave of the nineties, Nasdaq -and it's lookalikes- all over the world- will facilitate the coming new energy transition investment wave. For benchmarking all these new companies and new projects there is a need for a transparent trans market rating structure, without that these new investments will not be able to attract as much capital as they could if this structure was available. All the exchanges of the world will consider to install special energy focused units that facilitates both the needs of these new companies/projects and the needs of the investors. Once again the Energy as Rating model will be of much use for them. What type of companies will be listed? Project owning companies: One project companies. Multi project companies (from out of transparency demand, these projects should be easily to grade), but the need for transparency will put extra pressure on multi project companies, resulting is less internal diversity within companies. The times of internal complex listed companies are over. Project developing companies. Project building companies. Project material companies. Project knowledge companies. Material knowledge companies. Specific knowledge companies. The project developing companies will use an IPO very often (or they will sell the project whole or in big parts outside the public exchanges). New energy companies will occupy more than half of the space in all the financial media. Energy as IPO is a concept capable of generating a massive energy transition investment wave.


Author: Gijs Graafland


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