Iberdrola, one of the largest energy companies in the world, has done just that, raising a record €5 billion ($5.8 billion) successfully. We believe this capital increase will positively impact electricity grid investments in the U.S. and U.K. The move is one piece of the company’s audacious long term plan to grow its industry leading infrastructure. Its ambition is to capture an unprecedented level of investment in its network enterprises.
They raised capital through an issuance of 331 million new shares. The short, accelerated bookbuilding process attracted more than US$10bn of demand. That raises $1.5 billion for the company, which had the order book for its share offering 3.8 times oversubscribed, showing huge demand from investors. The shares were priced at €15.15 each and the IPO represented a major achievement and landmark for the company and Spanish market respectively.
Record-Breaking Share Offering
Iberdrola’s recent capital raise stands as the largest accelerated bookbuild in Spain since Banco Santander’s €7.5 billion raise in 2015. This successful offering further highlights the company’s strong financial performance and its focus on long-term investment in the nation’s most vital and essential infrastructure.
This capital raise will provide the requisite funds to accelerate Iberdrola’s ambitious €55 billion investment plan. Specifically it will improve projects in 2026 through 2031. This figure represents an incredible 75% increase over the last six-year investment cycle. More importantly, it further emphasizes the need for grid modernization.
“No impact on results from the new tariffs, which would have a cost impact on investment of less than 1%, thanks to supply chain management.” – Iberdrola
Strong Financial Performance
Iberdrola recently reported a net profit of €3.56 billion for the first half of 2025. This represents an amazing 20% organic growth on a comparable basis. Further, their gross operating profit (EBITDA) was €8.29 billion, a 5% YOY increase. Even with a 12% drop in EBITDA for Spain, the US and European growth covered this loss earning an EBITDA increase of 4%.
As a measure of activity, in the first half of 2025, Iberdrola invested €5.66 billion. That’s a 7% jump from this time last year. Over 60 percent of these investments were directed toward projects in the US and UK alone. This reflects the company’s very deep strategic commitment to these high growth markets.
Future Projections
Further out, Iberdrola is forecasting a double-digit increase in net profit for its full-year 2025 targets. The company’s leadership continues to sound bullish about long-term growth powered by deepening investment and their growing market penetration.
This capital raise improves Iberdrola’s financial credentials. It further sets the company up to capitalize on growing opportunities across the expanding energy landscape. The telecom giant’s latest move comes as the company pours billions into electricity grids. Its goal is to fulfill the increasing demand while focusing on sustainability and operational efficiency.