Energy minister: Minimum 11 lei per Electrica share on listing on June 16

The Romanian Government at its sitting endorsed a draft resolution aimed at approving the privatization strategy by public offer for the share capital increase by the addition of private capital of Bucharest-based Electrica SA Electricity Distributor and Supplier.

2014-06-12 11:20:15

"Today we have adopted a price threshold for Electrica listing with a minimum listing price of 11 RON per share and a maximum listing price of 13.5 RON per share. It is actually one of the largest listing processes ever on the Romanian capital market. The company will raise at least some 435 million Euro, if considering the lowest price," Minister-delegate for Energy Razvan Nicolescu said, quoted by Act Media.

He explained that after the Government resolution is adopted, the Financial Supervisory Authority is to give its assent to the listing and afterwards a road show will be staged by June 26 to include London as well; the effective listing will take place by around July 3, he added.

"We have also established the tranches in this listing process: 85 percent will be aimed at the institutional investors, while for the retail investors we have approved 15 percent, but such a percentage could rise up to 22 percent, should there be interest from the small retail investors,", the minister underscored.

Electrica is a company in a very good financial state at present, since it has managed to recoup much of the arrears from the Romanian Railways Company Freight Division, the minister added.

Nicolescu said the small investors are guaranteed to be able to buy 250 to 1,000 shares, with those purchasing more than 1,000 stocks to get the pro-rate depending on the underwriting rate. There will also be 5 percent discounts for those buying between 1,000 and 20,000 shares in the first week, the minister said.