Electrica shares to be included in Bucharest Stock Exchange's main index

Shares of Romania’s largest electricity distribution company Electrica (BVB ticker: EL) will be included in the main index of the Bucharest Stock Exchange, BET, starting August 11, according to a BVB announcement. Electrica was listed on the Bucharest Stock Exchange on July 4, following a EUR 444 million initial public offering in June, the largest IPO ever on the Romanian capital market, in which the company sold 51 percent of its own shares. The sale price was RON 11 (approximately EUR 2.5), but one week after the listing the market price went bellow the IPO price, to a minimum of RON 10.72 and then stabilized at about RON 10.9. The trade volume for Electrica shares also declined to bellow EUR 1 million per day, as few investors have been willing to sell their shares bellow the IPO price. Electrica is currently the sixth largest Romanian company listed on the Bucharest Stcok Exchange, with a market capitalization of almost EUR 860 million, and a free float of more than 40 percent. The company will replace local brokerage firm Broker Cluj in the composition of the BET Index. The exact share Electrica will have in the index will be calculated based on closing prices on August 1. The BET Index contains the most important ten companies listed on the Bucharest Stock Exchange, with oil and gas company OMV Petrom (SNP), investment fund Fondul Proprietatea (FP), private bank Banca Transilvania (TLV) and gas producer Romgaz (SNG) having the largest shares (almost 80 percent of the index). Electrica was also listed on the London Stock Exchange, via global depository receipts (GDRs). Andrei Chirileasa, andrei@romania-insider.com