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The listing of Hidroelectrica involves several key steps that must be followed, but first of all, the repeal of Law 173/2020, which prohibits the alienation of state participations, Johan Meyer, CEO Franklin Templeton Investments Romania and Fondul Proprietatea Portfolio Manager said on Wednesday.
"There are several key steps to follow. First, the repeal of Law 173 prohibiting the alienation of state participations. Hidroelectrica has two shareholders represented by the Ministry of Energy as the majority shareholder and Fondul Proprietatea as a minority shareholder. The listing process will be led by Hidroelectrica, supported by the shareholders. There is support from all parties involved in the listing. The first steps that have been taken have been the appointment of a legal adviser and a capital market consultant, who will help in the future structuring of the initial public offering. The next step would be the appointment of investment banks, the structuring of the IPO and the execution. As regards the potential investors in Hidroelectrica, I think you can count on many of the shareholders of Fondul Proprietatea, the pension funds in Romania, but also on international shareholders," Johan Meyer told a press conference.
Asked what the company's plans are in terms of equity securities, he said that the portfolio is continuously evaluated, both for listed and unlisted companies.
He also specified that there is still a significant discount that is applied in the valuations of unlisted entities, such as Hidroelectrica, which means that the value for Fondul Proprietatea continues to be considerably higher than the one we see in figures.
