Electrica, the electricity supplier and distributor, said on Friday it has raised RON 1.95 billion (EUR 444 million) from selling a 51 percent stake on the capital markets, making it the biggest initial public offering (IPO) in the history of the Bucharest Stock Exchange (BVB).
The final offering price for institutional and large retail investors was set at RON 11 per share (minimum price included in prospectus) and USD 13.66 per global depositary receipts (GDR). The listing was carried out in Bucharest and London. At these prices, Electrica has a market capitalization of RON 3.81 billion (EUR 868 million).
The trading of shares and GDRs of Electric offering, which was oversubscribed two times, is expected to start on July 4, according to the intermediary consortium.
Gabriel Dumitrascu, director of the department for privatizations and management of energy state assets, said in a statement that Electrica generates most of its profit from the distribution of electricity, providing predictable dividends and profits to shareholders.
“We believe that the Electrica share will maintain its attractivity in time due to this stability,” said Dumitrascu.
Following consultations with the global coordinators of the offering, Electrica has decided to reallocate close to 6 percent of the shares from large investors to retail investors, taking their tranche to over 20 percent of the offering. For small retail investors, Electrica has granted up to 1,000 shares per buyer and provided a 5 percent discount in the first five days of the offering.
Government officials said on Thursday said that most of the institutional investors have a stable profile and will keep the shares for longer, while the retail tranche should support the company’s liquidity on the stock market.
Electrica had Citigroup Global Markets Limited, Raiffeisen Bank and Societe Generale as global coordinators and joint bookrunners for the offering. BRD-Groupe Societe Generale was manager and SSIF Swiss Capital the distribution agent.