Electrica IPO two times oversubscribed; retail stake could be increased by 5 pct

The initial public offering of 51% in Romanian state-run energy company Electrica SA was twice subscribed, and the high number of bids received from retail investors has prompted the authorities to consider increasing the stake available in the segment by five percentage points.

Most institutional investors who subscribed shares in the IPO came from from Romania, Great Britain, the United States and Poland, writes Reuters.

The government may increase the number of shares designated for retail investors to more than 20 percent of the total sale to secure the future free float of the shares, Energy Minister Razvan Nicolescu said on Thursday.

Romania is on the right track to raise around EUR 435 million (USD 592 million) from the sale of a majority stake in Electrica SA power distributor.

The average price for the shares sold in the Electrica initial public offering will probably be close to 11 lei per share, the minimum price set by the government, Gabriel Dumitrascu, head of the asset sale office in Bucharest, told reporters on Thursday. The final price will be announced after talks with sale managers, he said, quoted by Bloomberg.

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