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UPDATE 1-Portugal's Greenvolt seeks valuation of up to $687 million in IPO

(Adds valuation, details)

MADRID, July 2 (Reuters) - Portuguese biomass energy firm Greenvolt said on Friday it was targeting a valuation between 543 million euros and 581 million euros ($687 million) with the listing of up to 25.2% of its shares planned on July 13.

Greenvolt, which is fully owned by Portuguese pulp producer Altri, plans to raise up to 206 million euros through a stock market listing to fund its expansion, including in European solar parks and wind farms.

The company had said last week it planned to raise around 150 million euros from the listing.

Greenvolt has set a target price for its shares of between 4.25 euros and 5 euros in a bookbuilding period held between Friday and July 8. The process will include a 15% greenshoe option open to the joint global coordinators of the deal.

“We are extremely encouraged by the great initial reception among specialised investors of our IPO,” Chief Executive Joao Manso Neto said in a statement.

Greenvolt shares will be listed on Euronext Lisbon.

Renewable energy companies in Spain and Portugal are lining up to tap the market for funds, with the industry becoming increasingly popular among investors worldwide as governments and corporations try to wean themselves off fossil fuels and stem climate change.

Greenvolt’s initial public offering follows the one carried out by Acciona Energia on Thursday in Madrid.

Acciona Energia’s shares rose more than 7% on their first trading day, valuing the company at 9.4 billion euros, one of the most valuable stock market debutantes in Europe this year.

Greenvolt, which operates five forest biomass-fired thermoelectric plants in Portugal, plans to invest as much as 1.8 billion euros by 2025 in solar photovoltaic and onshore wind projects elsewhere in Europe.

In addition to the IPO, Greenvolt will grant new shares worth 56 million euros to the shareholders of Polish renewable energy firm V-Ridium in exchange for their company. ($1 = 0.8455 euros) (Reporting by Sergio Goncalves and Inti Landauro; Editing by Elaine Hardcastle and David Evans)

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