The initial public offering (IPO) of Romanian hydropower company Hidroelectrica was priced at RON 104 per share, which is in the upper half of the price interval (RON 94-112), implying a valuation of 9.4 billion euros for the whole company.
At this price, Fondul Proprietatea, the selling shareholder, will get around 1.9 billion euros for its 19.94% stake in the company, if it sells the additional shares over-allotted for stabilization purposes.
“We are happy to see the strong investor interest which has driven a successful outcome,” said Chief Executive Bogdan Badea. The stock will start trading on July 12 on the Bucharest bourse.
The government will retain its 80% holding in the largest electricity producer in Romania, which has a power capacity of 6.3 gigawatts from 182 hydro power plants.
While plans to list the company have been discussed for over a decade, an IPO was required by the EU as part of a deal to unlock post-pandemic recovery funds.
