Electrica's IPO set to begin on June 10

Electrica’s IPO set to begin on June 10

Newsroom 23/05/2014 | 16:56

The initial public offering of state-owned Electrica, which supplies power to Transylvania and northern Muntenia (southern region of Romania), will be carried out between June 10 and June 23, people close to the matter said.

The state will option 51 percent of its shares and is expecting to raise over EUR 390 million from local investors and the investors on the London Stock Exchange.

The deal is expected to be the biggest listing on the Bucharest Stock Exchange, exceeding the one last autumn for Romgaz.

A novelty for the deal will be the State’s guarantee for small investors that will subscribe to the offer a minimum of 1,000 shares, the equivalent of EUR 3,600. Small investors will also benefit from discounts similar to the ones practiced for Romgaz’s IPO (5 percent off the final offer price in the first week and 3 percent otherwise).

“By guaranteeing the subscriptions, we want to encourage retail investors and Romanians with savings to participate in the offer”, according to Gabriel Dumitrascu, head of Privatizations in the Energy Department and the coordinator of Electrica’s IPO.