At these prices, Electrica’s 51% stake on offer is valued at RON1.95 billion to RON2.39 billion (EUR443.3 million to EUR544.1 million).
Nicolaescu said the government hopes to raise at least EUR435 million at the offering, which will also include a global depositary receipt (GDR) component for the London Stock Exchange.
“We are talking about the largest offering on the Romanian capital market. The company will list its shares if investors subscribe shares worth at least EUR435 million,” Nicolescu said.
The minister delegate didn’t give an indicative price range for the GDRs, but said he will be in London next week to promote the IPO, which should be completed by June 26.
People familiar with the matter had told Mediafax earlier this month that the initial public offering would take place between June 16 and June 25, while the actual listing is scheduled for July 3.
Electrica plans to sell 177.18 million shares at the IPO, which will be include three separate packages for corporate and retail investors, with small retail investors benefiting from price discounts. The 15% stake reserved for retail investors could be upped to 22%, based on the demand.
The government hired a consortium comprising BRD, Citigroup, Raiffeisen Capital&Investment, Societe Generale and Swiss Capital to assist with the sale.
Electrica is fully controlled by the Romanian Economy Ministry.
The company reported a net profit of RON60 million in the first quarter, on total sales of RON1.2 billion. (EUR1=RON4.396)