The initial public offering for a subsidiary of NRG Energy Inc. got off to an electric start on Wednesday, jumping more than 24 per cent in morning trading.
The IPO for NRG Yield Inc. priced at $22 on Tuesday, the company said. Shares were up $5.34, or 24.3 per cent, to $27.34 in morning trading. More than 10 million shares had changed hands. The shares are listed on the New York Stock Exchange under the ticker symbol "NYLD."
The offering of 19.575 million shares raised more than $430 million. The banks managing the IPO have an option to buy 2.9 million more shares if demand is strong enough.
NRG created the subsidiary to buy and operate natural gas, solar and wind plants. Shares of NRG Energy fell 6 cents to $28.73.