Romanian producer of electric equipment Electro-Alfa International, controlled by local entrepreneur Gheorghe Ciubotaru (just over 90% directly and indirectly), with a RON 648 million (EUR 130 million) turnover and EUR 57 million (EUR 11 million) in 2024 and positive growth rates for both in H1 2025, is carrying out an initial public offering at Bucharest Exchange (BVB) during February 2 and 11. It aims at raising between RON 551 million and RON 584 million (EUR 108 million - EUR 115 million) by issuing new shares worth 35% after the IPO.

The IPO thus values the company at RON 1 billion - 1.1 billion (around EUR 200 million - 210 million), or EUR 318 million - EUR 325 million post-money.

The company promises a dividend payout ratio of at least 30%.

The offer takes place between February 2 and 11 and is divided into two tranches: 10% for retail investors, respectively about 6.6 million shares, and 90% for institutional investors. 

Retail investors benefit from a 5% discount on the final price during the first four days of subscription. The minimum order for retail investors is 400 shares – corresponding to RON 3,540 (EUR 700).

The company operates across several segments of the energy infrastructure chain, from the production of low- and medium-voltage electrical equipment to design, engineering, procurement, and construction (EPC), and maintenance services. 

According to the prospectus, approximately 23% of revenues come from outside Romania. Electro-Alfa works with clients from the utilities, industry, and public sector and has partnerships with technology providers such as Siemens, ABB, Schneider Electric, and Hitachi Energy.

The funds raised will support an investment program of approximately EUR 103 million between 2026 and 2028, focused on capacity expansion and acquisitions. The offer documentation already mentions several target transactions: the takeover of 99.99% of Elcomex IEA, an EPC contractor specialising in high-voltage and nuclear projects, 51% of Spiact Craiova, a provider of railway signalling and automation solutions, and 33% of Electro-Alfa CM, a manufacturer of metal products.

Through these acquisitions, the company is trying to position itself in segments related to major public investments in energy and infrastructure, including nuclear projects and railway modernisation, markets with higher barriers to entry and long-term contracts.

iulian@romania-insider.com

(Photo source: Andranik Hakobyan/Dreamstime.com)