Retail investors place orders for 1.36 mln Premier Energy shares on first day of one-week IPO

The 1,300 orders placed by the retail investors during the first day of the one-week IPO operated by natural gas and electricity utility company Premier Energy at the Bucharest Exchange summed up to 1.36 million shares out of a total of 6.25 million earmarked to them under the Base Scenario, according to Ziarul Financiar.

Retail investors are promised a 5% discount for orders placed in the first three days of the IPO.

The sentiment of brokers is mixed, as the IPO comes during a light trading period and before the disbursement of dividends by Bucharest Exchange blue chips. The timing may thus explain the moderate interest or weak volume of orders placed by some retail investors, particularly on the first day. Investors' sentiment, in turn, is mixed as the renewables sector largely depends on regulations.

Separately, Premier Energy CEO Jose Garza announced that the company secured the commitment of four anchor investors.

"Both from Romania and abroad, in equal shares," said Jose Garza, quoted by Forbes.

In value terms, at the maximum price of RON 21.5 per share, the orders already placed by the retail investors reached nearly RON 30 million (EUR 6 million).

The retail investors are given a 5% discount out of the final price (set in the segment of institutional investors) for the orders placed during the first three days of the IPO.

The retail segment may be allotted more shares compared to the 20% portion of the IPO if the orders placed are at least twice the initial allocation. Separately, the total number sold under the IPO under the Base Scenario (31.25 million) may be supplemented by up to 20%, depending on the interest expressed by investors.

(Photo source: Dreamstime.com)