Shares of Romanian power grid operator Transelectrica floating at lower price than during SPO

Investors who rushed to buy shares in Romanian power grid operator Transelectrica in the Secondary Public Offering (SPO) last week could have bought the same shares at lower prices this week. The Transelectrica offer was oversubscribed by 1.5 times last week. Small investors then paid RON 15.7 per share, while Transelectrica's shares are now trading at RON 15.37, slightly up from RON 15.27 yesterday (April 4 ), after a downwards trend.

According to commentators, some of the investors who bought in the public offering wanted to sell fast, which initially led the price to fall. The Romanian state will raise EUR 37.7 million from the sale of 15 percent in local electricity carrier Transelectrica, whose secondary public offering ended last week on the Bucharest Stock Exchange, where the company’s shares were already floating. In 2011, Transelectrica posted a net profit of EUR 21.2 million (RON 90.2 million), 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