The listing of the Romanian power producer Hidroelectrica on the Bucharest Stock Exchange could be the largest such transaction in Romania’s history as well as the largest initial public offering (IPO) in Central and Eastern Europe this year, said Greg Konieczny, vice-president of Templeton Emerging Markets Group and portfolio manager of the local investment fund Fondul Proprietatea.

The company should exit insolvency in May, or in June the latest, said Konieczny, reports local Agerpres.

Its listing could generate a real change on the Bucharest Stock Exchange (BVB) and the local capital market, he added. It could improve liquidity and contribute to attracting more investors.

Lucian Anghel, BVB board chairman, said at the beginning of the month that Hidroelectrica should list 20-22% of its shares, and not 15% as previously decided by the Government. Fondul Proprietatea may also sell some of its shares in the company.

In 2014, Hidroelectrica became insolvent again due to litigations with some of its former clients. The company has cancelled the damaging contracts that led to its insolvency.

editor@romania-insider.com