The European Bank for Reconstruction and Development (EBRD) is likely to become one of the shareholders of Electro-Alfa International following the company’s ongoing initial public offering, according to Romanian media reports.

Profit.ro reported that the EBRD, which acted as an anchor investor in several recent Bucharest Stock Exchange listings, including Cris-Tim Family Holding last autumn, is expected to participate in the Electro-Alfa IPO. 

The offering has attracted strong demand in its first days. According to Ziarul Financiar, institutional investors placed orders covering almost the entire tranche allocated to them on the second day of subscriptions. The IPO runs between February 2 and February 11.

Under these conditions, Electro-Alfa has effectively secured its listing on the main market of the Bucharest Stock Exchange. The strong investor interest suggests that the transaction, valued at between RON 551 million and RON 584 million (EUR 108 million – EUR 114 million), is likely to be completed successfully.

Unlike other listings where founders sell part of their holdings, Electro-Alfa opted for a capital increase through the issuance of new shares. As a result, all funds raised will remain within the company. A stake of 35% is earmarked for new shareholders.

The proceeds from the IPO, estimated at more than EUR 100 million, are to be channelled into acquisitions, vertical integration, expansion of production capacity, and development in foreign markets. Management said the current environment is favourable for executing these plans.

Among the potential acquisition targets mentioned by the company are Elcomex, active in maintenance and electrical installations, including in the nuclear sector, and Spiact Craiova, a company specialising in railway infrastructure. These businesses would give Electro-Alfa access to highly specialised market segments.

“Domains like nuclear and railway are more niche, and it is not easy to penetrate from the outside. By acquiring a prestigious company with experience and solid technical know-how, we gain much faster access to market needs and customer trust,” founder George Ciubotaru told Economedia.ro.

Chief Executive Officer Ștefan Petrea said the listing comes after years of preparation rather than as an opportunistic move. 

“We believe that Electro-Alfa has reached a level of maturity and has certified a business model that is today internally validated by the results of recent years,” he said.

iulian@romania-insider.com

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