PPC: €4 Billion Share Capital Increase to Finance 2030 Strategic Plan

ΔΕΗ (Public Power Corporation) is making a move of strategic importance by announcing a "mammoth" share capital increase of €4 billion (approx. $4.34 billion). The newly raised capital will be utilized to finance the Group’s new 2030 Strategic Plan. Concurrently, the Ministry of National Economy and Finance announced the Greek State's decision to actively participate in the process.

The New 2030 Strategic Plan

The company’s new Strategic Plan focuses on capitalizing on growth opportunities through an extensive investment program totaling approximately €24 billion (approx. $26.04 billion). PPC's primary objective is to nearly double its installed capacity, reaching 24.3 GW by 2030. This is expected to be achieved through annual net capacity additions of 2.4 GW, with a primary focus on Renewable Energy Sources (RES), flexible production, and energy storage systems.

Furthermore, the company is launching its international expansion with significant investments in new high-growth markets in Central and South Eastern Europe (CSEE). This specific region presents attractive investment prospects, mainly due to energy scarcity leading to higher returns, the gradual retirement of many thermal units, and limited interconnections.

Investments in Technology and Innovation

PPC is also expanding its activities into the technology sector. As part of its strategic plan, it is beginning the implementation of a Data Center in Kozani (Phase I), aiming to have 300 MW in operation by the end of 2028. Through this, the Group seeks to invest in strategic and complementary sectors.

Financial Targets and Dividend Policy

The financial targets set through 2030 are highly ambitious. Management is targeting earnings before interest, taxes, depreciation, and amortization (EBITDA) of approximately €4.6 billion (approx. $4.99 billion). Additionally, net profits are projected to double by 2028 and triple by 2030. PPC confirms its commitment to a dividend distribution of €1.20 per share in 2028, setting a new target to increase this to €1.40 per share by 2030.

The Share Capital Increase Process

The capital raising will be conducted through a combined offering: a public offering in Greece and a private placement to institutional investors outside Greece. The offering price of the new shares will be determined via a book-building process. The capital increase is proposed to be carried out with the exclusion of pre-emptive rights.

However, the company has made provisions for existing shareholders through a priority allocation mechanism. In the public offering, existing shareholders—based on the electronic records of ΕΛΚΑΤ (Hellenic Central Securities Depository, Greece’s central registry for listed securities)—will have priority to maintain at least the same ownership percentage they currently hold, subject to certain conditions. A similar mechanism may be applied, at the company's discretion, in the international offering, based on criteria such as investment behavior and investment horizon. The goal of the increase is to create a more efficient and sustainable capital structure that provides flexibility for future opportunities in energy and technology.