Romania’s Hidroelectrica plans 10% IPO next September

Romania’s Hidroelectrica plans 10% IPO next September
By bne IntelliNews August 23, 2019

The management of Romanian hydropower company Hidroelectrica estimates that the initial public offering (IPO) for listing 10% of the company's shares on the stock exchange can take place next September, Hidroelectrica general manager Bogdan Badea said quoted by

Hidroelectrica is one of the largest power producers in the country and a very profitable company with over 6 GWh installed capacity in his power plants. 

The restitution fund Fondul Proprietatea evaluated its 20% stake in Hidroelectrica at RON4.14bn (€874mn) in its mid-year report, up 17% y/y, which indirectly puts the value of the company at €4.37bn.

Hidroelectrica’s IPO is the most looked-for IPO in Romania, given the company’s size and profitability. The 10% IPO will consolidate its financial resources and support its expansion plans: earlier this year, the company’s management expressed interest in taking over the Romanian assets that CEZ and Enel are considering selling, Badea said on August 9, reported

As regards the IPO, the company will most likely opt for a dual listing on the markets in Bucharest and London, Badea stated.

However, he warned that the effects of the emergency decree 114/2018 still pose a risk for the company as long as the provisions of the decree indicate the mandatory sale of “up to 65% of Hidroelectrica’s production” on the regulated market, where the price is set by the state.

Related Articles

Putin to decide on $40bn tax breaks for Arctic oil

Russia's President Vladimir Putin will decide on RUB2.6 trillion ($40bn) worth of tax breaks for Arctic hydrocarbon extraction and infrastructure projects at a meeting with the finance ministry and ... more

Chances of “historic photo op” of Trump with Iranians creep up as US president reportedly considers backing French credit relief for Iran

US President Donald Trump has left the impression with foreign officials, members of his administration, and others involved in Iranian negotiations that he is actively considering a French plan to ... more

Trump ‘discussed easing Iran sanctions to help secure meeting with Rouhani’

President Donald Trump discussed easing sanctions on Iran to help secure a meeting with Iranian President Hassan Rouhani on the sidelines of the UN General Assembly gathering in New York later this ... more