“There was very high interest. Top managers at the world’s biggest investment banks entered negotiations. Negotiations lasted until 3 in the morning on the day the deal was closed. Allocations to institutional investors were not made pro-rata, but depending on investor profile. The objective was to have as many heavyweight investors as possible, long-term investors, not speculative ones. A balance between price and investor quality was sought,” the above-mentioned sources explained for Ziarul Financiar.
One third of the tranche allocated to institutional investors, meaning 80% of the offering, namely 18% of Hidroelectrica shares, went to foreign institutional investors. Hence, they now hold around 5-6% in the company. The rest went to Romanian institutional investors.
Many local “family offices” such a Paval family of Dedeman, also subscribed, according to the above-quoted sources.
Around 400 foreign institutional investors were attracted, with many of them entering Romania’s capital market for the first time.
(English version by Catalina Apostoiu)