George Stassis, chief executive of Public Power Corporation, announced on Thursday a €4 billion share capital increase to be carried out in May, marking one of the largest corporate fundraising initiatives in Greece in recent years. The move comes five years after the company’s previous capital raise of approximately €1.35 billion and signals a renewed strategic drive by management aimed at both accelerating growth and strengthening its financial position.
The planned capital increase is a key component of PPC’s long-term strategy through 2030, which aims to significantly expand the company’s scale and profitability. According to the plan, earnings before interest, taxes, depreciation and amortization (EBITDA) are expected to more than double, reaching €4.6 billion by 2030 from €2 billion projected for 2025. Net profits are forecast to more than triple over the same period, rising to €1.5 billion from €450 million. Shareholder returns are also set to improve substantially, with the dividend per share expected to climb to €1.4 by the end of the decade, compared with €0.4 in 2024, implying an average annual growth rate of roughly 24%.
Central to this strategy is an extensive investment programme totaling €24.2 billion between 2026 and 2030. The vast majority of these funds—around 95%—will be directed toward growth projects, particularly in energy transition and infrastructure, while nearly half will be invested outside Greece. This international expansion is designed to diversify the company’s operations geographically and reduce exposure to domestic market risks. Funding for the programme will come primarily from operating cash flows, which are expected to cover 54% of the total, while 31% will be financed through additional borrowing. The planned capital increase will contribute the remaining 15%, or approximately €3.63 billion.
The move also reflects a focus on maintaining financial stability as the company expands. One of the key objectives is to keep the ratio of net debt to EBITDA comfortably below 3.5 times, in line with existing commitments to lenders and a level considered sustainable for the business. The capital increase will be carried out without traditional pre-emptive rights for existing shareholders, a structure more commonly used in international markets. However, current investors will still have the opportunity to maintain their stakes through a priority allocation mechanism, provided they participate in the offering.
The process is expected to unfold over the coming weeks. Shareholders are due to approve the plan at a general meeting on May 14, after which regulatory approval will be sought and a detailed prospectus will be published outlining the terms, risks and use of proceeds. The offering itself will take place simultaneously in Greece and internationally, targeting both retail and institutional investors. Demand from global investors will be assessed through a book-building process, which will ultimately determine the final price of the new shares.
Despite the scale of the transaction, the Greek state has signaled its intention to remain a key shareholder. It plans to participate in the capital increase in order to retain a stake of approximately 33.4%, effectively preserving a blocking minority, down slightly from its current 35.3% holding through the Hellenic Corporation of Assets and Participations. Meanwhile, attention is also focused on the position of CVC Capital Partners, which currently owns just over 10% of PPC through Selath Holdings, as it has yet to clarify whether it will take part in the new share issue or allow its stake to be diluted.
