According to Ziarul Financiar daily, citing sources familiar with the deal, the consortium comprises Citi, Morgan Stanley, Erste and Jefferies (global managers), Bank of America, Barclays, UBS, UniCredit and Wood (joint managers) and respectively Banca Transilvania-BCTP and Swiss Capital (co-lead managers).
The role of the selected investment banks in the IPO process is to recommend the optimal structure of the transaction, promote the equity story of Hidroelectrica among local and international investors, place securities in the IPO, as well as assist with the listing process.
“We firmly believe that the IPO and the subsequent listing of Hidroelectrica will bring significant benefits to the Romanian capital markets and Romania as a whole, as it has great potential to attract significant domestic and foreign investors for the Romanian leading electricity production company,” stated Ilinca von Derenthall, Chairperson of the Board of Nominees.
Rothschild & Co is Fondul Proprietatea’s financial advisor in this transaction. Hidroelectrica’s listing will take place after an IPO in which Fondul Proprietatea plans to sell at least 15% of the company’s shares, out of its 20% stake. The Romanian State, which holds the majority stake of 80% in Hidroelectrica, has approved the listing but is not willing to sell any shares.
Hidroelectrica is Romania’s largest state-owned energy producer and the most profitable state-run company. Fondul Proprietatea’s half-year report indicated an overall valuation of EUR12.9 bln for Hidroelectrica. Based on this figure, an IPO for 15% of the company’s shares would amount to over EUR1.9 billion, which would make it by far the biggest listing in Romania’s history.