Secondary offer for Romania's Transelectrica exceeds subscription threshold, small investors oversubscribe

The secondary public offer (SPO) for state-owned electricity carrier Transelectrica has already exceeded the threshold needed to be successful, with over 77 percent of the shares on offer already subscribed by investors on Tuesday (March 27), the final day of the SPO. The threshold for making the offer successful was at 70 percent. Small investors have oversubscribed, with 1.3 million subscribed shares, of 124 percent of the amount allotted. Large investors subscribed 72 percent of the shares on sale.

The maximum subscription price for small investors was RON 19.2, while for large investors, RON 16. Investors had until March 27 to buy shares in Transelectrica, at prices varying between RON 14.9 per share and RON 19.2, as set in the offer. This would value the company at between EUR 37 million and EUR 48 million. The Romanian state is selling a 15 percent stake in Transelectrica, which is already listed on the Bucharest Stock Exchange. Its shares are trading at RON 16 on the BSE. In 2011, Transelectrica posted a net profit of EUR 21.2 million (RON 90.2 million) in 2011, nearly 10 times higher than the 2010 results. The company had a net turnover of around EUR 685 million (RON 2.9 billion), up 14 percent compared to the EUR 603 million (RON 2.54 billion) posted in 2010. editor@romania-insider.com