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The final offer price at the initial public offer (IPO) carried out by Fondul Proprietatea for its shares in Hidroelectrica was set at RON 104 per offer share, which gives a market capitalisation of RON 46.8 billion (EUR 9.4 billion), Hidroelectrica reported on Wednesday.
The offer was oversubscribed several times at the offer price, with the demand being high both from global and Romanian investors.
The main investors purchased a total equivalent of RON 2.24 billion in shares at the offer price, subject to certain customary conditions. Settlement will take place on July 10, 2023.
After the closing of the IPO, Hidroelectrica will apply for admission to the listing and trading of its shares at the Premium category of the regulated market of the Bucharest Stock Exchange (BVB). The admission and start of trading on the Bucharest Stock Exchange under the symbol H2O will take place on July 12, 2023.
Immediately after the admission, Hidroelectrica's shares will be included in the BET index of the BVB.
"We are delighted by the strong interest from investors, which determined the success of Hidroelectrica's initial public offering. This is a significant milestone that will support the long-term development of our company. On behalf of the company, I look forward to welcoming the new shareholders of Hidroelectrica. We have an extraordinary business that enjoys a unique opportunity - as a leader in electricity production in Romania, with a 100% renewable energy portfolio - to stimulate the creation of added value as we help the country achieve energy transition. As a publicly-traded company, we look forward to keeping our shareholders up to date with our strategy focused on operational efficiency, diversification and business expansion with the aim of providing long-term benefits to all stakeholders," says Bogdan Badea, executive director of Hidroelectrica.
Hidroelectrica is the largest energy producer in Romania in terms of the amount of energy produced and an important player in the hydropower field in Europe. The group owns and operates 182 hydropower plants, five pumping stations and a wind farm that are strategically located in eight geographically organised branches in Romania.
The company owns a production portfolio 100% from renewable sources, with an installed hydroelectric production capacity of 6.3 GW and an installed onshore wind capacity of 108 MW in the Crucea wind farm.
Between 2018 and 2022, Hidroelectrica had a market share of approximately 29% in the total energy delivered to the grid, according to the annual reports of the National Energy Regulatory Authority (ANRE).
Hidroelectrica is one of the largest hydropower producers in Europe, with a volume of electricity generated from hydroelectric sources of 13.6 TWh in 2022, 16.9 TWh in 2021 and 15 TWh in 2020 , all quantities regarding gross production .
