“The company aims to distribute, under the form of ordinary dividends, at least 90% of its distributable individual annual net profit starting with the financial year immediately following the offering. At the same time, the company might decide through shareholders’ decision to distribute, based on its own judgement, extraordinary dividends from the company’s retained earnings, if disposable”, in line with Hidroelectrica’s IPO prospectus.
Thus, ZF considered a scenario that envisages the distribution of 90% of the profit budgeted for 2023 under the form of dividends, namely, an amount of RON3.3 billion, which corresponds to a dividend of RON7.32 per share.
Based on the upper limit of RON112, the dividend yield is 6.5%, and based on the lower limit of RON94, the yield reaches 7.8%. The higher the distribution from the profit, the higher the dividend yield.
Small investors subscribed RON5.7 billion worth of shares in the first six days of Hidroelectrica’s IPO.
Hidroelectrica is Romania’s biggest energy producer, accounting for a third of its electricity. Various state plans to list the company have been around for more than a decade. Hidroelectrica aims to raise more than EUR1 billion in what is poised to be one of Europe’s largest IPOs so far this year.