The listing follows an initial public offering (IPO) worth RON579.64 million (EUR115 million) and marks a unique moment for the BVB: the early closing of the IPO on February 6, although the offering period was scheduled for February 2–11, due to the oversubscription of both the institutional and retail investor tranches.
Electro-Alfa International, whose technical solutions are manufactured in its four state-of-the-art factories in Boto?ani, Romania, is listed on the stock exchange under the ticker symbol EAI. The company’s market capitalization at the IPO price of RON8.85 per share—the maximum price within the offering range—stands at approximately RON1.67 billion (EUR 327 million).
Following the offering, Electro-Alfa International benefits from a capital infusion of RON544.27 million and will use the funds to support its growth strategy, including strategic acquisitions, expansion of internal capabilities, investments in energy production and storage, innovation, international expansion, and securing the working capital required to participate in major projects.
The company’s free float is approximately 35%. Gheorghe Ciubotaru, the company’s founder and entrepreneur, who previously held 80% of the share capital, will retain a 52% stake, while Electro Alfa Management, which previously held 20% of the shares, will retain 13%. Following the offering, institutional investors in Electro-Alfa International include the European Bank for Reconstruction and Development (EBRD) and NN Pensii, each acquiring stakes of over 5%.
The initial public offering comprised a total of 65,990,507 shares, for which 5,409 subscription orders were recorded. The shares were allocated as follows: 56,091,932 shares were allocated to institutional investors at a price of RON8.85 per share, while 9,898,575 shares were allocated to retail investors, of which 9,882,434 shares were allocated at a price of RON8.4075 per share and 16,141 shares at a price of RON8.85 per share.
Within the public offering, the retail tranche was initially set at 10% of the total shares offered. Due to strong investor interest—reflected in an oversubscription rate of approximately 5,800% in the retail tranche—the company decided to increase the allocation by an additional 5%, bringing the final allocation for individual investors to 15%.
“Electro-Alfa International joins today the companies listed on the Main Market of the Stock Exchange, following a successful IPO that once again confirms investors’ appetite for solid Romanian companies with a strong track record that choose to take this important step toward the capital market. Electro-Alfa’s more than 35 years of activity and progress reflect the company’s maturity and serve as a benchmark of trust for capital market participants. I welcome the Electro-Alfa International team to the BVB and congratulate both the company and its investors on the success of the IPO. I am confident that the professionalism demonstrated so far will define the way Electro-Alfa operates as a listed issuer as well, and that the capital market will continue to successfully fulfill its role as a driver of the Romanian economy,” said Radu Hanga, Chairman of the Board of Directors of the Bucharest Stock Exchange.
“When one of the key players in the energy sector becomes an issuer on the BVB, it is clear proof that Romania’s entrepreneurial environment and the capital market support each other and evolve together. Electro-Alfa International is such an issuer, entering the capital market through one of the most dynamic initial public offerings carried out on the BVB, as a company valued at RON1.67 billion. I congratulate the Electro-Alfa International team for their unwavering ambition to achieve their objectives over more than 35 years of activity and for placing Romania on the map of the international energy industry. I welcome them to the Stock Exchange and wish them continued success!”, stated Remus Vulpescu, CEO of the Bucharest Stock Exchange.
“Electro-Alfa’s listing on the Bucharest Stock Exchange marks one of the most important milestones in our company’s history. We began this journey more than 35 years ago with the ambition to build a strong Romanian company, committed to delivering quality and growing steadily through hard work and integrity. Today, our status as a public company reflects our organizational maturity and confirms the confidence of the market places in our business model. For us, this step represents transparency, accountability, and the ambition to take Electro-Alfa to the next level. We extend our sincere thanks to all our employees, partners, and investors who have contributed to this achievement and who continue to stand by us,” stated Gheorghe Ciubotaru, President and Founder of Electro-Alfa International.
“The strong interest shown by both institutional and retail investors validates the maturity of our business model and the coherence of our growth strategy. Our stock exchange listing brings greater visibility and increased responsibility, but also the opportunity to accelerate the projects we have set in motion. We are committed to maintaining the operational and financial discipline that has defined us to date and to generating long-term shareholder value through responsible growth. This marks an important milestone for the company and represents a firm commitment to all those who believe in our potential and strategic direction,” said George Ciubotaru, Vice Chairman of the Board of Directors.
“The first day of trading marks the beginning of a new chapter for Electro-Alfa. The capital raised through the IPO provides us with the resources needed to invest in expanding our production capacities, adopting modern technologies, and developing our presence in international markets. We have a clearly articulated strategic direction and projects already underway, focused on delivering sustainable growth, supported by disciplined financial management. Our objective is to further strengthen our position in the energy infrastructure sector and to generate sustainable value for our shareholders. We are fully prepared for this new phase and approach the responsibilities associated with being a listed company with the utmost seriousness,” stated Stefan Petrea, CEO of Electro-Alfa International.
Swiss Capital and UniCredit Bank acted as Joint Lead Managers and Bookrunners, while the law firm Clifford Chance Badea provided legal advisory services throughout the entire process.
“Swiss Capital, as a member of the underwriting syndicate, is honored to have supported Electro-Alfa International on its journey to the Bucharest Stock Exchange through the successful completion of its initial public offering of newly issued shares. The strong interest in the IPO, the significant oversubscription at the top end of the price range, and the early closing of the offer — a first in the recent history of the local capital market — reflect robust and diversified demand from both domestic and international investors. The entry of the EBRD and pension funds into the shareholder structure provides the company with a solid foundation for long-term sustainable growth. This milestone marks an important stage in the company’s evolution and sets a benchmark for the Romanian capital market,” stated Constantin Bruma, Broker, Capital Markets, SAI Swiss Capital S.A.
“The initial public offering carried out by Electro-Alfa International represents one of the most prominent transactions of its kind completed by a local entrepreneurial company on the Bucharest Stock Exchange and sends a strong signal regarding both the potential of Romanian entrepreneurial businesses and investor appetite. The listing is a natural step in the evolution of a mature company and a leader in its industry, opening the way to a new phase of growth. The investors who joined the founders and the professional Electro-Alfa team have chosen to be part of a journey with solid prospects and have demonstrated their confidence in the company’s ability to capitalize on development opportunities both domestically and internationally. The UniCredit team is honored to have contributed to this ambitious project. We thank the Electro-Alfa International team and all partners involved for their essential role in the success of this transaction,” stated Nicoleta Ruxandescu, Capital Markets Coordinator, UniCredit Bank.
“Congratulations to Electro-Alfa International for this resounding success achieved in front of the most demanding investor segment – ??the capital market, and for the strategic step taken in the development of the business. The enthusiasm with which the offer was met, both in the institutional investor segment, but also in that of retail investors, demonstrates that the capital market in Romania is starting to have depth and is both capable and willing to support high-performing entrepreneurial companies. This is also seen in the portfolio of our profile practice, the share of transactions in which companies with majority Romanian private capital are involved has been increasing in recent years”, stated Radu Ropota, Clifford Chance Badea Partner and coordinator of the team of lawyers.