Romania’s Electrica starts trading in Bucharest and London, shares gain 2% on IPO price

Romanian electricity distributor Electrica’s shares were up 2 percent in early trading on their debut on the Bucharest Stock Exchange (BVB) on Friday, July 4. The company’s GDRs also started trading on the London Stock Exchange. Electrica’s shares opened their first day of trading at RON 11.11 which is 1 percent above the price at which the company sold its shares in the initial public offering ended June 25, which was RON 11. After the first half an hour of trading, the price went up to RON 11.26 per share, which is 2.36 percent above the IPO price. By 12:00 the shares were trading at RON 11.2. At this price, the company is valued at EUR 883 million, which makes it the sixth most valuable Romanian company listed on the Bucharest Stock Exchange. Electrica sold 51 percent of its own shares in an initial public offering (IPO) which took place between June 16 and June 25. The company raised EUR 444 million, selling its shares at the minimum price of its IPO range, which was RON 11. Some 21 percent of the shares were allotted to individual investors and the other 79 percent were given to institutional investors. One fifth of the IPO was allocated for global depository receipts (GDRs) which are traded in London. Romania’s prime minister Victor Ponta went to London to ring the opening bell of London Stock Exchange on the debut of Electrica, just like he did in November 2013 for Romgaz' listing. Natural gas producer Romgaz also sold GDRs in its IPO last year and is listed both in London and in Bucharest. However, the main market for both Romgaz and Electrica shares is the Bucharest Stock Exchange, as trading volumes in London are small. Andrei Chirileasa, andrei@romania-insider.com