Romania raises EUR 37.7 mln for Transelectrica stake after final day rush oversubscribes offer

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 earlier this week on the Bucharest Stock Exchange, where the company's shares were already floating.

Investors oversubscribed the secondary public offer for Romanian state owned power grid Transelectrica, which received offers for 58 percent more shares than available for sale. Small investors were more active and will pay a higher price than institutional investors. Offers placed by small investors were 2.8 times higher than in the initial offer, while institutional investors oversubscribed by 47 percent. The offer needed subscriptions of at least 70 percent to be successful. The last day of the Secondary Public Offering for 15 percent in Transelectrica brought the highest volume of subscriptions. The last day, March 27, started with a 55 percent level of subscriptions, then a final rush to invest in the national electricity carrier meant the day ended with the offer being oversubscribed. 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