Romanian hydropower company Hidroelectrica to launch IPO next September

The management of Romanian hydropower company Hidroelectrica, which delivers some 30% of the country’s electricity, estimates that the initial public offering (IPO) for listing 10% of the company's shares on the stock exchange can take place next September, Hidroelectrica general manager Bogdan Badea informed, according to Economica.net.

This is the most looked-after IPO in Romania, given the company’s size and profitability.

The company will most likely opt for a dual listing on the markets in Bucharest and London, Badea stated. However, he explained that the effects of the emergency ordinance 114/2018 still represent a risk for the company as long as the provisions of the ordinance indicate the mandatory sale of “up to 65% of Hidroelectrica’s production” on the regulated market, where the price is set by the state, with the share to be decided by the market regulator ANRE (depending on the residential consumers’ demand and other producers contributing to the regulated electricity mix).

Hidroelectrica is the most valuable state company. The previous listing of a major state company was that of electricity distribution and supply group Electrica, in June 2014.

(Photo source: Facebook/Hidroelectrica)