June 27--In a better-than-expected showing for NextEra Energy's spinoff, the utility said Friday that NextEra Energy Partners raised $400 million in an initial public offering today.
The company priced 16.25 million shares of NextEra Energy Partners (NYSE: NEP) at $25. Last week, NextEra offered a range of $19 to $21.
The so-called yieldco traded at $32 this morning in its first day on the market.
The higher-than-expected price reflects investors' demand for dividends. As a so-called yieldco, NextEra Energy Partners is attractive to investors seeking dividends in a market where interest rates on savings are at historic lows.
The utility created NextEra Energy Partners this year to run 10 green power plants that produce energy from the wind and sun. It had revenues of $169 million for the year ended March 31.
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