This is the largest IPO on the Romanian capital market so far. The proceeds will be used to finance Electrica’s investments, minister delegate for Energy Razvan Nicolescu said in a statement.
Electrica has sold 177.18 million shares and global depositary receipts, or GDRs, at RON11 a share ($13.66 a GDR), the low end of the expected range of RON11 to RON13.5 a share. Each GDR represents four shares.
Following the operation, Romania’s stake in the company will drop to around 48.8%.
Electrica’s general manager Ioan Rosca said he was satisfied with the interest level received from both retail and corporate investors. Most of the subscriptions came from Romania, Poland, England and the U.S.
Retail investors were offered 37.2 million shares and GDRs, up from roughly 26.6 million shares initially allocated in the tranche. Electrica exercised its right to re-allocate shares from the corporate tranche following the high number of retail subscriptions received at the IPO.
Small investors who subscribed more than 1,000 shares benefited from a discount of 5% the final price for the stock bought in the first five days of the offering.
The shares and GDRs are due for listing in Bucharest and London on July 4.
A consortium comprising BRD, Citigroup, Raiffeisen Capital&Investment, Societe Generale and Swiss Capital assisted with Electrica’s offering, which took place between June 16 and June 25.