With orders surpassing 2.4 times the shares earmarked for individual investors on the first day alone, the 35% IPO carried out by electric equipment producer Electro-Alfa promises to end as one of the most successful public offerings on the local stock exchange. The individual investors placed orders for RON 142 million (EUR 28 million) shares, and they still have three days to capitalise on the 5% discount of the final price formed on the segment of institutional investors.

Market data shows that interest comes not only from old investors, but also from new accounts, in a context in which stock market returns in recent years and successive listings have visibly increased the retail base.

"I wouldn't know how much real money there is; it depends on each bank, but the volume on the first day shows the high interest of investors in large, solid companies that are part of strategic sectors, such as critical infrastructure, not just energy," said Antonio Oroian, broker at Goldring, cited by Ziarul Financiar.

There has also been talk in the market that some of the money could come from broker financing, with investors using trading credits secured by existing portfolios to increase their exposure to the offering. The practice is common in popular IPOs, where investors try to offset the effect of pro-rata allocation.

Depending on the subscription price, the company's value would be between RON 1.57 billion (EUR 308 million) and RON 1.67 billion (EUR 327 million), post-money or EUR 200 million to EUR 210 million pre-IPO. Based on net profit estimated at RON 100 million (EUR 20 million) for 2025, this would result in a P/E ratio of nearly 10.

The company plans to use the money raised under the ongoing IPO to boost activity, including by taking over companies already envisaged.

iulian@romania-insider.com

(Photo source: Electroalfa.ro)