Hidroelectrica listing fuels turnover at Bucharest Exchange on its debut day

The turnover at Bucharest Stock Exchange (BVB) soared to nearly RON 830 mln (EUR 166 mln) on July 12, more than 16 times the average daily turnover in 2022 and more than the turnover achieved in the entire month of June. Of this, RON 760 mln was trading with Hidroelectrica (BVB: H2O) shares on the debut day after the IPO in June-July.

The rest of the turnover at BVB on July 12 was thus nearly RON 70 mln, indeed well above last year's average (+40%) and nearly double the average daily turnover in June. But this can be attributed to investors placing their excess cash resources left after the Hidroelectrica IPO, where only 0.32 shares were given for each share subscribed by a small investor, while the oversubscription rate was high for institutional investors as well.

As regards the price, H2O shares ended their first trading day at RON 110, 5.77% above the IPO price, after peaking at RON 115 during the day, Profit.ro reported.

The BET blue-chip index, where H2O has a weight of nearly 15%, increased by 1.43%, with the shares of Bucharest Stock Exchange (BVB: BVB) boasting the second-highest gain after Hidroelectrica: +3.97%. The shares of Banca Transilvania, with the largest weight in the BET index, rose by 2.81%.

After the listing of Hidroelectrica, the Romanian stock exchange becomes one of the largest in the region with an aggregate capitalization exceeding RON 40 bln (EUR 8 bln). Out of this, a quarter is contributed by Hidroelectrica.

"This offer took place in a complicated moment, both from an economic point of view, we are in a period when inflation has increased, interest rates have risen, and investors have become more careful. Also a complicated context from a geopolitical point of view, and here we mainly look at what is happening around us. The success of this offer, in this context, shows us that the local market has gained in maturity, has gained in attractiveness," BVB Board President Radu Hanga said.

"I call on all Romanians to invest in the capital market, in the Bucharest Stock Exchange and in Hidroelectrica," energy minister Sebastian Burduja said, presented at the event marking the introduction of Hidroelectrica shares for trading.

(Photo source: Facebook/Bursa de Valori Bucuresti)