The initial public offering (IPO) through which Electro-Alfa International offered up to 65.9mn new shares, representing about 35% of its post-money share capital, was closed early on February 6, just five days after launch, amid strong investor demand, the company said in a press release. 

Both institutional and retail investors oversubscribed the offer. In the retail tranche, subscriptions reached around 383mn shares, equivalent to RON3.4bn (€700mn), implying an oversubscription rate of nearly 60 times. The final offer price is to be announced on February 9.

The company’s shares are expected to start trading on the main market of the Bucharest Stock Exchange (BVB) under the ticker EAI in early March.

“The increased interest in our offer confirms the capital market's confidence in our business model and the development strategy of Electro-Alfa Internațional," said George Ciubotaru, vice-president of the company's board of directors. " It is a milestone of success in our company's evolution and a unique reference point for the Romanian capital market, with Electro-Alfa International being the first company to close an offer early in the recent history of the Bucharest Stock Exchange." 

Depending on the final subscription price, Electro-Alfa International’s post-money valuation would range between RON1.57bn and RON1.67bn (€308mn-€327mn), corresponding to a pre-IPO valuation of about €200mn-€210mn. Based on an estimated net profit of RON100mn (€20mn) for 2025, this would imply a price-to-earnings ratio of close to 10.

The company plans to use the proceeds from the IPO to support further growth, including through the acquisition of companies already identified as potential targets.

The European Bank for Reconstruction and Development (EBRD) is expected to become one of Electro-Alfa International’s shareholders following the completion of the IPO, according to Romanian media report