Romania’s biggest IPO scheduled by mid-2023

The state-owned hydropower producer Hidroelectrica will have its initial public offering by the end of June of next year.

The date was agreed upon after talks between prime minister Nicoale Ciucă and other representatives of the government and a delegation from Fondul Proprietatea, a joint-stock company valued at USD 3.3 bln, established by the Romanian state but independently managed. The government reviewed the investments managed by the Fund and analyzed the preparations made for Hidroelectrica’s IPO.

The government committed to taking the company public as part of the post-pandemic recovery and resilience funds package negotiated with the EU. It is now hopeful that the IPO will develop the local capital market and also improve the governance, transparency, and efficiency of its majority state-owned companies.

Fondul Proprietatea, which is run by investment management service Franklin Templeton, currently holds 20% of Hidroelectrica, and plans to list at least a 15% stake during the IPO. The government will not contribute any of its shares to the listing. Nevertheless, Fondul Proprietatea estimated its shares to be worth around EUR 2.5 bln.

Hidroelectrica is Romania’s largest hydropower energy producer, providing roughly 30% of Romania’s electricity. In the first trimester of 2022, Hidroelectrica saw its profit skyrocket 70% relative to last year in the context of the ongoing European energy crisis.

(Photo source: Octav Ganea / Inquam Photos)