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Electrica IPO wraps up successfully, more than 200 percent oversubscribed

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Electrica successfully wrapped up the subscription stage of its International Public Offering, which was over 200 percent oversubscribed, Minister-delegate for Energy Razvan Nicolescu on Thursday told a press conference.

He added that the total amount will be announced after the conclusion of talks on a larger allocation of shares to retail investors.

According to Gabriel Dumitrascu - General director of the General Department for Privatization and State Ownership Administration, Romanian investors - pension funds and - as a first - the Financial Investment Companies (SIFs) account for 25 percent of subscriptions by institutional investors; institutional investors from the United Kingdom subscribed 23 percent, peers from Poland subscribed 17 percent, and US ones - 13 percent.

Romania seeks at least 1.95 billion lei from the sale of a majority stake in the power distributor. The Romanian government offered 177 million fresh Electrica shares, with the state's stake set to reduce to approximately 48.8 percent after the sale.

The Electrica IPO that saw 51 percent of the company's shares put up for sale, ended on June 25; 7 percent of the shares (specifically 12.4 million shares) are allocated to retail investors, while large investors had 8 percent (14.1 million) assigned of the shares subject to this operation. The IPO starting prices range from 11 lei/share to 13.5 lei/share, with the company targeting at least 435 million euros. Leaving aside the potential discounts which may be provided to retail investors, the value of the IPO stands between about 1.949 billion lei (443.3 million euros) and 2.392 billion lei (544.1 million euro).

The IPO closing price will be announced within short.

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