The shares of electric engineering solutions producer and deployment group Electro-Alfa International (BVB: EAI) closed the first day of trading at RON 10.5 – 18.6% above the price set in the IPO carried out earlier this year in February. Just over 4 million shares, or 2.1% of the company’s total capitalisation, changed hands on the first day of trading.

The company’s capitalisation neared RON 2 billion (EUR 400 million).

Electro-Alfa's listing offer on the Bucharest Stock Exchange ended on February 9 at a final price of RON 8.85 per share, at the upper limit of the IPO price range. Electro-Alfa offered for sale 65.99 million new shares, representing approximately 35% of the share capital after the increase. The offer was conducted in a price range of 8.35–8.85 lei per share, resulting in a post-money capitalisation of approximately RON 1.62 billion. 

The funds raised through the capital increase, some RON 544 million, are intended for the expansion of energy production and storage capacities, acquisitions in the area of ​​energy infrastructure, and regional development.

Romanian producer of electric equipment, Electro-Alfa International, is controlled by local entrepreneur Gheorghe Ciubotaru, with a stake of just over 90% directly and indirectly before the IPO, 52% directly and 66.7% directly and indirectly after the IPO. The company reported 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. The company promises a dividend payout ratio of at least 30%.

The company operates in 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: Facebook/Bursa de Valori Bucuresti)