Premier Energy launches EUR 135 mln IPO on Bucharest Stock Exchange

Premier Energy PLC, one of the fastest-growing energy companies in Romania and the SEE region, will carry out an initial public offering (IPO) on the Bucharest Stock Exchange (BVB) between May 8 and May 15, 2024.

Romania's Financial Supervisory Authority (ASF) approved the IPO prospectus on Tuesday, May 7.

The company is looking to sell 25 million new shares in the IPO, while the majority shareholder - EMMA Alpha Holding – will sell 6.25 million existing shares. The shares sold in the IPO represent about 29% of Premier Capital's shares post-IPO.

The price interval for the IPO is RON 19 – RON 21.5 per share. Institutional investors will be able to subscribe shares at any price within this interval, while retail investors will subscribe at the maximum price of RON 21.5.

The total value of the offer will be between RON 594 mln and RON 671 mln (EUR 120-135 mln), depending on the final price. However, both the company and its majority shareholder are willing to increase the number of shares sold by up to 20% if the demand is high. If this happens, the value of the offer could potentially climb to RON 900 mln (EUR 181 mln).

Citigroup Global Markets Europe, UniCredit Bank and Wood & Company Financial Services are the Joint Global Coordinators of the IPO. Alpha Bank Romania and BT Capital partners are Joint Bookrunners and Banca Transilvania is the distribution group.

Considering the maximum IPO price of RON 21.5 per share, Premier Energy's pre-IPO valuation is about EUR 432 million while the post-IPO valuation would be EUR 540-562 million. The group reported revenues of EUR 912 mln and a net profit of EUR 79 mln in 2023. The group's unaudited pro-forma results for 2023, considering the recent acquisition of local electricity supplier CEZ Vanzare, indicate revenues of EUR 1.29 bln and a net profit of EUR 99.5 mln.

The IPO prospectus is available here.