“Electrica has set a new record amongst Romanian companies in terms of IPO proceeds. The success of Electrica’s listing is a natural reflection of the strength and soundness of the Romanian economy, which has recently posted some of the highest growth rates in the EU. This success also speaks of the attractive returns that investors can find in Romanian companies and of the remarkable outcome of our efforts to secure an alternative financing source for our companies’ investment programs and sustainable development,” PM Victor Ponta stated, according to a London Stock Exchange press release.
Also Friday, Electrica shares start trading on the Bucharest Stock Exchange.
Electrica SA sold GDRs equal to 19% of the total stock offered at its initial public offering ended June 25.
“This is a significant milestone for Romania’s privatization program and clearly shows that Romanian companies can attract the world’s largest investors and international visibility without compromising their ability to develop a domestic shareholder base,” Xavier Rolet, London Stock Exchange Group CEO, stated.
Electrica CEO Ioan Rosca said that the funds from Electrica’s IPO will help the company implement its investment program to align it with European industry trends.
“We will create value for our shareholders through investing the IPO proceeds mainly in our distribution network, where we can benefit from a favorable regulated return for these types of investments. It is our intention to distribute dividends based on a guidance of approximately 85% of consolidated profit attributable to shareholders, “ Rosca said.
To mark the first day of dealing of the company’s GDRs on London Stock Exchange, Prime Minister Victor Ponta, Electrica CEO Ioan Rosca and Energy Minister Razvan Nicolescu opened trading on the London markets Friday morning.
Electrica raised 1.95 billion lei (EUR444.3 million) in its initial public offering of 51% of its shares, the largest IPO on the Romanian capital market to date. The company sold 177.18 million shares and GDRs at RON11 a share and $13.66 a GDR, respectively.
Following the IPO, the Romanian state owns 49% in Electrica. The European Bank for Reconstruction and Development (EBRD) invested EUR75 million in the offering and secured 8.6% of the stock, becoming its second-largest shareholder. The third largest shareholder is Dutch group ING.