Fondul Proprietatea ups small investors’ tranche in Hidroelectrica IPO by 53%

The initial public offering (IPO) of shares at Romania’s major electricity producer Hidroelectrica ended at a price of RON 104 per share, resulting in a EUR 9.4 billion valuation for the company.

Fondul Proprietatea will get around RON 9.3 billion (EUR 1.9 billion) after it decided to sell its entire 19.94% stake in the company.

The small investors that placed their money to buy Hidroelectrica shares (BVB: H2O) were eventually allotted a 20% portion of the total number of shares (total IPO: 89.7 million, representing 19.94% of Hidroelectrica) sold by Fondul Proprietatea (BVB: FP), up from 15% from a smaller total IPO initially announced.

The IPO managers, with FP’s consent, used the entire amount of 11.7 million shares to increase the size of the offering from 78 million shares to 89.7 million shares. This resulted in 53% more shares for small investors (17.9 million) and 8.2% more shares for institutional investors (71.8 million) compared to the initial distribution.

Small investors will thus get 32 shares for every 100 shares subscribed, a pro-rata allocation 53% larger than estimated before the release of the IPO outcome.

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