Electrica looking to raise EUR 435 million through IPO

Newsroom 11/06/2014 | 13:51

The initial public offering for Electrica will have a starting price of between RON 11 and RON 13.5 /share, the company looking to attract EUR 435 million, Razvan Nicolescu, delegate minister for Energy, announced on Wednesday.

Leaving out eventual discounts that will be awarded to small investors, the value of the offer varies between RON 1.949 billion (EUR 443.3 million) and RON 2.392 billion (EUR 544.1 million).

Earlier in the day, sources quoted by zf.ro said the offer will have a starting price of RON 11 /share. The listing will not have a fixed price and the subscription will be performed in a price interval, between a minimum (RON 11 per share) and a maximum.

The IPO’s price interval will be established in a Government meeting on Wednesday. The state also has to set the total value of the offer which according to zf.ro’s sources will be RON 2 billion (EUR 450 million).

At the end of the IPO, depending on the investors’s involvement, the state will establish the final offer price. For example, the Romgaz IPO was subscribed 17 times in a price interval of 24 – 32 RON per hare and the final price was set at RON per share.

The Electrica IPO will be launched on June 16, 2014, with the listing scheduled for July 3rd. Shares will be traded on the Bucharest and London Stock exchange.