One fifth of Romania's Electrica IPO will be allotted to GDRs traded in London, demand for shares was higher

About 21 percent of the shares issued by Romania’s state owned electricity distributor Electrica will be traded on the London Stock Exchange through Global Depository Receipts (GDRs) and the rest will be traded on the Bucharest Stock Exchange (BVB), sources close to the transaction told Romania-Insider.com. Electrica raised a total of EUR 444 million in its recently closed IPO, which makes this the largest transaction ever on the Romanian capital market. The trading for both shares and GDRs should start on July 4. The final allotment for GDRs/shares was not yet made public by the company as Electrica’s GDRs are still subject to approval by the UKLA (UK listing Authority). A public announcement could be made later today (Friday, June 27) or tomorrow. “About 27 percent of the institutional investors’ tranche in the Electrica IPO will be allotted for GDRs traded in London. Most institutional investors preferred to get shares rather than GDRs,” according to Romania-Insider.com's sources. The institutional investors’ tranche was initially allotted 85 percent of the shares issued by Electrica for this IPO, but they finally got 79 percent of the shares, as demand on the individual investors’ tranches was higher and more shares were allotted to them. The GDRs to shares ratio is lower than in the Romgaz IPO which took place in October 2013, in which GDRs represented some 36 percent of the whole transaction. This also shows that investors are more interested to invest directly on the Romanian capital market. Andrei Chirileasa, andrei@romania-insider.com