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Fondul Proprietatea received gross proceeds of 8.06 billion lei from the offer for Hidroelectrica shares
Fondul Proprietatea received gross proceeds of 8.064 billion lei (excluding any over-allotment option) from the initial public offering of Hidroelectrica shares, according to a report submitted to the Bucharest Stock Exchange on Monday.
The admission and start of trading of Hidroelectrica shares on the regulated spot market of the Bucharest Stock Exchange will take place on July 12, 2023. The BVB Indices Commission approved in its extraordinary meeting on July 6, 2023 the procedure for the inclusion of Hidroelectrica shares in the composition of the BVB stock indices, starting with the first day of trading of the company's shares on the stock exchange.
Hidroelectrica announced on Wednesday that the offer price established in the initial public offer made by Fondul Proprietatea with regard to the shares owned by Hidroelectrica was established at 104 lei/share offered, which means a market capitalization of 46.8 billion lei (9.4 billion euro).
‘The offer was oversubscribed several times at the offer price, the demand being high on the part of investors at global level and on the part of investors in Romania’ shows a press release of the company.
The main investors acquired in total the equivalent of 2.24 billion lei in shares at the offer price, under the reserve of some usual conditions.
The retail investors had the right to a discount of 3% of the offer price for those purchase order which were registered in the first five working days of the offer period. The final offer price with discount for subscribed shares under these conditions is 100.08 lei/offered share.
The offer, including additional shares over-allotted for stabilisation purposes, consists of 89,708,177 shares, representing 19.94% of Hidroelectrica's issued share capital and the Fund's entire stake in the company.
The selling shareholder granted the Global Joint Coordinators an over-allotment option consisting of 11,701,067 shares, or 15% of the shares offered.
Hidroelectrica is the largest energy producer in Romania in terms of the amount of energy produced and a major player in the hydropower sector in Europe. The group owns and operates 182 hydropower plants, five pumping stations and a wind farm that are strategically located in eight geographically organized branches throughout Romania.
The total installed production capacity of the hydroenergy assets of the company divided in storage, run-of-river and pumping stations.
The company owns a production portfolio 100% from renewable sources, with hydro installed production capacity of 6.3GW and an onshore installed wind capacity of 108 MW in the Crucea wind park.
Between 2018 and 2022, Hidroelectrica had a market share of approximately 29% as regards total energy delivered in the system (according to the annual reports of the National Authority for Regulation in the Energy Domain (ANRE).
Hidroelectrica is one of the largest hydropower producers in Europe, with a volume of electricity generated from hydropower of 13.6 TWh in 2022, 16.9 TWh in 2021 and 15 TWh in 2020 (all quantities representing gross production). Generation in 2022 reflects less favourable hydrological conditions due to severe drought.
At the same time, Hidroelectrica supplies electricity on the electricity market wholesale and retail of Romania. The market share of the company as regards the electricity supplied to retail consumers increased from 1.3 % in 2020 to approximately 8% in December 2022, according to ANRE. The number of retail clients increased from 2,465 in 2020 to over 482,000 in 2022. In 2022, the company supplied approximately 3.7 TWh electricity to loyal clients, according to ANRE.
Immediately prior to the IPO, the shares of the company were owned by the ministry of energy (80.06%) and Fondul Proprietatea (19.94%). Fondul Proprietatea owned a minority share in Hidroelectrica since the start, in 2005.