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* Innogy to be priced at 35-36 euros per share
* Shares twice oversubscribed at 35 euros per share -source
* Upper end of 32-36 euro target range
* RWE shares down 2.2 pct
By Arno Schuetze and Christoph Steitz
FRANKFURT, Oct 5 Utility RWE is
expected to price the shares of Innogy, which bundles its
renewables, network and retail units, at the upper end of the
target range, Innogy said on Wednesday, signalling strong demand
for Germany's largest IPO since 2000.
Investors will likely pay a price between 35 and 36 euros
($39.29-40.41) per share in the offering, a spokeswoman for
Innogy said, the upper end of a 32-36 euro target range
communicated last month.
Would-be shareholders are keen on Innogy's high share of
regulated businesses, giving them clarity over its profits for
several years into the future at a time when interest rates
remain at record lows.
Books are covered twice already at a price of 35 euros
apiece, a person familiar with the listing said, amounting to
orders worth more than 9.7 billion euros. For any IPO to go
through smoothly bankers consider it necessary to get bids for
twice the volume of shares available.
The person added one large U.S. investment fund alone had
placed an order for stock worth more than 700 million euros,
following a similar order from asset manager BlackRock,
which has committed to buy 940 million euros of Innogy shares.
As part of the IPO, Innogy will issue 55.6 million new
shares while parent RWE aims to sell as many as 83.3 million
existing shares, valuing the unit at up to 20 billion euros,
more than twice RWE's current market capitalisation.
Parent RWE, which will hold at least 75 percent in Innogy
following the listing, had already received orders for all of
the shares on offer on Sept. 26, the first day of the
subscription period. The stock is due to start trading on
Shares in RWE, Germany's largest utility behind E.ON
, were down 2.2 percent at 1126 GMT, the
second-biggest decliners among German blue-chip stocks.
($1 = 0.8908 euros)
(Additional reporting by Alexander Huebner; Editing by Georgina
Prodhan, Edward Taylor, Maria Sheahan and Alexandra Hudson)