Romania’s largest electricity generation company Hidroelectrica might go public in the first half of 2015, after having had to postpone its initial public offering scheduled for June 2014 due to the relapse into insolvency. Another offer that was supposed to be listed this year, that of CE Oltenia, is expected to take place in the second semester of next year, writes zf.ro.
The initial public offering of electricity supplier and distributor Electrica which took place this year raised RON 1.95 billion (EUR 444 million) from selling a 51 percent stake on the capital market. It was the biggest IPO in the history of the Bucharest Stock Exchange (BVB). Other companies in the energy sector, such as Nuclearelectrica and Romgaz, went public in 2013.
Hidroelectrica reentered insolvency in February after several energy traders won their appeals at the Bucharest Appeal Court. Administrator Remus Borza told Reuters in May that Hidroelectrica will likely exit insolvency in May-June 2015 and list a minority stake in the second half of that year.
The hydroelectricity producer Hidroelectrica reported a RON 124 million profit in October. For the first ten months of the year the company, still under an insolvency reorganization plan, posted a profit of RON 943 million, up 23.64 percent compared to the same period of 2013.
Complexul Energetic Oltenia, which groups the energy complexes of Oltenia basin with lignite mines, registered losses of RON 290 million (around EUR 66 million) in the first nine months of this year, from a profit of RON 106 million in the year-earlier period.
The Ministry of Economy has a 77 percent stake in the holding, while the Property Fund owns 21.5 percent. The company has an estimated share capital of EUR 280 million. The Ministr of Economy first announced it intention to sell a 15 percent stake in CE Oltenia back in 2012, and since then the IPO has been delayed several times.