RO minister says Hidroelectrica IPO scheduled for H2 next year
The minister of energy, Virgil Popescu, declared in an interview for Reuters, quoted by Bursa, that in 2022 a 15% package of Hidroelectrica shares will be listed on the stock exchange.
The IPO, expected with interest by investors and Fondul Proprietatea, has been constantly deferred over the past years. Under the initial plans, the IPO was designed as the issue of new shares.
"We want to complete the listing procedures in the second half of next year. It may be in the third or fourth quarter, but it will be in 2022." Virgil Popescu told Reuters.
"The listing procedures are suspended by a populist law passed by the previous parliament. Their resumption will take longer," he added.
Hidroelectrica, which came out of insolvency in 2017 after five years, supplies almost 30% of Romania's electricity needs with green energy from about 200 hydropower plants built during communism along with Romania's river network.
The law mentioned by minister Popescu (137/2020) was promoted and passed by the Social Democrats (PSD), Adevarul reported.
It bans the sale of state assets over a two-year period (starting 2020) on grounds that the prices would be too low during the Covid crisis. The law will cease producing effects before the end of 2022 - hence the Liberal (PNL) Government does not even have to abrogate it.
(Photo: Hidroelectrica Facebook Page)