Strong interest in Cenergy public offering
On Tuesday, the first day of its new shares’ public offering, Cenergy Holdings recorded strong investment interest from the US, where the 200 million euros of the share capital increase will be directed. The process will be completed on Thursday.
Most of the funds to be raised, as already announced, will be used to finance the investment in Baltimore, which is the first phase of the development of a wider investment plan by parent group Viohalco, the implementation of which will be re-evaluated at a later stage and based on the needs of the American market.
This second phase of development concerns the production of underwater cables, a sector in which Cenergy Holdings leads internationally with Hellenic Cables and the Corinth factory, which is one of the best in the world and the largest in Europe.
Cenergy’s entry into the US market begins with the construction of a factory for the production of terrestrial cables (low, medium and high voltage) in Baltimore, where the company has already invested in the purchase of the land (€29 million) and is in the process of issuing the permits.
At a special event on Tuesday, the management of Cenergy presented the company’s overall strategy that is inextricably linked to the energy transition, and described the advantages of the US market and the prospects it opens for further strengthening its position worldwide.
Officials described a market with antiquated power grids built in the 1930s that will need to be replaced. There are currently two companies active in the US network market, Premium and SouthWire. They operate at double the profit margins of their European counterparts, while demand is such that delivery times exceed a year, when in Europe they range between 14-15 weeks. These long delivery times even make Cenergy’s cable production plant in Thiva, central Greece, competitive, and that is thousands of miles away from the US.
As the financial director of the company, Alexandros Benos, revealed on Tuesday, Thiva Cenergy has already taken orders from the US for land cables that it will produce at the Thiva factory and transport them to the other side of the Atlantic earlier than the time its competitors currently manufacturing in the US can.
