Transelectrica SPO oversubscribed by 59 percent, led by retail investors

State-owned grid operator Transelectrica has passed the stock exchange test with flying colors, as its 15 percent secondary public offering (SPO) was oversubscribed by 58.8 percent, according to the latest available data on the Bucharest Stock Exchange (BSE).

The SPO started on March 14 and was finalized on March 27 at 17:00, when the oversubscription rate was 35 percent, but brokers also registered offers today between 11:00 and 12:00, taking the final subscription to 159 percent.

Small investors had 10 percent of the SPO, and the interest was significant as the oversubscription for the 1 million shares reached 279 percent. However, subscriptions had to be lower than LEI 500,000.

Big investors, which had 90 percent of the SPO, oversubscribed the offer by 45 percent, for almost 10 million shares. In this case, the subscription was higher than LEI 500,000.

In small investors, the price offer closed at 15.7 lei per share, while the big investors bought shares at 14.9 lei per share. This is the lower price limit set up by the Romanian Government. At these prices, Translectrica would cash in around EUR 37 million. However, the final offer prices for both investor segments will be decided tomorrow.

“The oversubscription of the Transelectrica offer is a good signal for the stock exchange, and proof of trust from investors, said Miruna Suciu, partner at law firm Musat & Asociatii. The success of the offer is due to favorable market conditions in Q1, and the way in which the Ministry of Economy and the Romanian Office of State Ownership and Privatization in Industry (OPSPI),” she added. Musat & Asociatii advised the state on this transaction.

Lucian Anghel, president of the BSE, recently told BR in an interview that a successful Transelectrica will be a road opener for the next offers in state-owned enterprises (SOEs) planned for this year. He added the minimum price asked by the Government will be crucial, and this proved to be right as the bulk of large investors rallied at 14.9 lei per share.

A consortium of BCR, Intercapital Invest SSIF and Swiss Capital was the intermediary in this SPO. Law firm NNDKP provided legal advice for the consortium during the preparation and performance of the offer which lasted for over 6 months.

Transelectrica was listed on the BSE in 2006 and the last public offering of state-owned company (SOE) was carried out on the BSE in 2007.