Private investment fund Fondul Proprietatea (FP), which holds 20 % stake in electricity producer Hidroelectrica, has hired investment bank Rothschild as equity adviser in the view of the company’s initial public offering (IPO).
According to Romanian media, the process of selecting the brokerage syndicate, which will most likely include financial intermediation divisions of some banks, has already begun, with FP currently holding meetings with banks.
However, the choice of the stock market where Hidroelectrica’s shares would be sold remains unclear, as Fondul Proprietatea seeks dual listing (both Bucharest and London Stock Exchanges), an option rejected by the local regulators that took steps to prevent or minimize such a scenario.
Regarding Rothschild’s role, an equity advisor helps the company to manage the process of issuing shares, providing impartial advice on all aspects of the transaction. It thus plays a different role than that of the listing consultant that is supposed to help a company navigate the IPO process.
Last month, Hidroelectrica’s shareholders have approved the hiring of legal and equity consultants for the listing of the company’s shares on the Bucharest Stock Exchange (BVB). This is in line with the two shareholders’ previous agreement on the listing of the company’s shares, but Fondul Proprietatea has constantly argued recently for the dual listing with the view of maximizing the value of its 20 % stake.
Hidroelectrica already selected STJ Advisors Group as equity consultant and Dentons as legal consultant two years ago.
