The decision was made on Friday (May 12) during the extraordinary meeting of the BVB’s Index Committee.
“The listing of Hidroelectrica’s shares – leader in electricity production and the main provider of technological services required in the National Energy System in Romania, on the stock exchange, following the announcement of Fondul Proprietatea related to the selling of its stake in the company’s shares, offers the premises of having the largest IPO ever on the Bucharest Stock Exchange. The listing of the company creates the opportunity to promote the capital market on a large scale among institutional and retail investors in Romania and, at the same time, the opportunity for the local capital market to be classified as an Emerging Market also by MSCI, important global index provider, thus increasing Romania’s visibility among international investors. In 2020, Romania was promoted by FTSE Russell to the status of Secondary Emerging Market”, according to BVB.
The Index Committee also made the following decisions:
1. Approval of inclusion of the company Hidroelectrica SA in the BET, BET-TR, BET-TRN, BET-XT, BET-XT-TR, BET-XT-TRN, BET-BK, BET-NG and BET Plus indices starting with the first day of trading for the company’s shares on the Main Market of BVB at the price established during the initial public offering (IPO);
2. Approval of the principle that, in the case of the indices having a fixed number of constituents (i.e. BET, BET-TR, BET-TRN, BET-XT, BET-XT-TR, BET-XT-TRN and BET-BK) the inclusion of Hidroelectrica SA will be done by replacing an already included company having the weakest position in terms of the relevant selection criteria for each individual index;
3. Approval that the complete public disclosure regarding the procedure for the inclusion of Hidroelectrica SA in the indices, as well as the date of calculation and the effective date of the new structures of the indices, observing the principles from points 1 and 2 above, will be carried out in a timely manner as the necessary information becomes available.