Romanian hydropower group Hidroelectrica, the most valuable state-owned company, expects to launch an initial public offering (IPO) to list its shares on the Bucharest Stock Exchange no sooner than the end of this year, according to the company's CEO, Bogdan Badea.

Hidroelectrica's listing will be a milestone for the Romanian capital market and should not be deferred later than next spring, Badea said at a press conference marking ten years since the listing of local investment fund Fondul Proprietatea.

Hidroelectrica is currently the biggest holding in Fondul Proprietatea's portfolio as the fund owns a 20% stake in the company valued at over €1bn (50% of the fund’s net asset value).

Hidroelectrica's performances may look impressive, but the company needs more capital to turn it into a regional player, Badea commented.

Currently, the planned IPO is blocked by legislation initiated by the opposition Social Democratic Party in 2020 that forbids the sale of state assets. However, the company has been preparing to list its shares for several years, and the process should go smoothly once this obstacle is lifted.

The current centre-right government has announced plans to abrogate the bill, originally aimed at preventing the sale of state assets under uncertain global economic circumstances. However, since then there has been a worldwide rally fuelled by QE and massive general liquidity.