Fondul Proprietatea hires Rothschild as equity adviser for Hidroelectrica’s IPO

Fondul Proprietatea (BVB: FP) has reportedly hired investment bank Rothschild as equity adviser in the view of listing the shares of the electricity producer Hidroelectrica, Ziarul Financiar announced, quoting sources familiar with the deal.

According to ZF, the process of selecting the brokerage syndicate, which will most likely include financial intermediation divisions of some banks, has already begun, with FP currently holding meetings with banks.

In the meantime, the choice of the stock market where Hidroelectrica’s shares would be sold remains in limbo as Fondul Proprietatea seeks dual listing, an option rejected by the local regulators that took steps to prevent or minimise such a scenario.

As regards Rothschild’s role, an ‘equity adviser’ helps a company manage the process of issuing (or selling) shares, providing impartial advice on all aspects of the transaction. It thus plays a different role than that of the listing consultant that is supposed to help a company navigate the process of listing on a public exchange for the first time.

(Photo: Liang Zhao/ Dreamstime)