Author: Gordon Platt




Edenor, a Buenos Aires-based electricity distributor, became the 12th Argentina-based company to trade on the New York Stock Exchange, following its initial public offering in the United States and Argentina. The company, also known as Distribution and Marketing Company of the North, raised $258 million in its IPO underwritten by Citi and JPMorgan. Edenor issued more than 15 million American depositary shares, each of which represents 20 Class B common shares that trade on the Buenos Aires Stock Exchange. The Bank of New York is the depositary bank for the ADS program.

Edenor said it is required to use 25% of the proceeds from its IPO to repurchase its restructured debt. The company recently received government approval for an increase in its distribution margin, or an effective rate increase, for non-residential customers. It is not allowed to pay a dividend until the middle of 2008 at the earliest. Edenor restructured most of its debt last year.

Argentina’s economy has been growing rapidly in recent years, increasing the demand for electricity. The country’s gross domestic product has averaged growth of 9% a year since 2003.

Electricité de France sold its remaining 25% stake in Edenor following the IPO. The French utility said it is shifting its focus back to Europe. In June 2005 EDF sold 65% of Edenor to Argentina’s Grupo Dolphin investment fund.

Gordon Platt