Bucharest Exchange to include Hidroelectrica in its market indices immediately after IPO

The shares of Romanian hydropower group Hidroelectrica will be included in the market indices of the Bucharest Exchange (BVB) immediately after they are listed by IPO and made available to trading, BVB decided on May 12, during the extraordinary meeting of the Index Committee.

Hidroelectrica will replace the company with the weakest position in terms of the relevant selection criteria for each individual index if the index has a fixed number of constituents. (i.e. BET, BET-TR, BET-TRN, BET-XT, BET-XT-TR, BET-XT-TRN and BET-BK).

The listing of Hidroelectrica’s shares following the announcement of Fondul Proprietatea related to selling its 20% stake offers the premises of having the largest IPO ever on the Bucharest Stock Exchange.

The listing of the company creates the opportunity to promote the capital market on a large scale among institutional and retail investors in Romania and, at the same time, the opportunity for the local capital market to be classified as an Emerging Market also by MSCI, an important global index provider, thus increasing Romania’s visibility among international investors.

In 2020, Romania was promoted by FTSE Russell to the status of a Secondary Emerging Market.

(Photo source: Inquam Photos/George Calin)