Romanian provider of infrastructure and infrastructure services Electrogroup Infrastructure announced its intention to pursue an initial public offering (IPO) on the Bucharest Stock Exchange (BVB).

The IPO market for private companies in Romania recently revived, with the listing of Medlife in December 2016 followed by the considerably larger IPO of Digi Communications in 2017. In addition, Fast food Sphera Franchise Group, which owns franchises for Romania and Moldova of KFC, Pizza Hut, Pizza Hut Delivery and Taco Bell, closed an IPO of a 25% stake in November last year. In February this year, the 49% secondary public offering of Romanian-Moldovan winery Purcari (registered in Cyprus) was fully subscribed.   

Electrogroup Infrastructure’s offer will comprise of a primary capital increase of up to 1.25mn new shares and a sale of up to 1.25mn existing shares. The selling shareholders, currently holding 100% of the company's share capital, are Teofil Muresan (34%), Simion Mureșan (33%) and Marian Pantazescu (33%), and they will retain the majority of the company’s shares after the offer.

Erste Group Bank AG and WOOD & Company Financial Services are acting as joint global coordinators and joint bookrunners for the offer. Romanian banks BCR and BRD Groupe Societe Generale are acting as joint bookrunners for the offer.

Electrogroup Infrastructure’s subsidiaries include Direct One, Electrogrup, Netcity Telecom, Nova Power & Gas S.R.L. It also holds 40% in Wind Energy Service East Europe.

The group owns and operates the longest neutral inter-city optical ground wire fibre optics network in Romania. In addition, through Netcity, the group is the owner and operator of the underground network for fibre optic in Bucharest, backed by a public concession agreement concluded for a 49-year period, until 2057. In energy infrastructure, the group is a distributor and supplier of electricity and natural gas, complemented by solar production sites.