Romanian state owned electricity distribution holding Electrica will start its initial public offering (IPO) in the middle of June and intends to finish it by the end of the month, according to an announcement from the Romanian Energy Department, which manages this privatization on behalf of the state.

The group publicly announced its intention to launch an initial public offering (IPO) both on the Bucharest Stock Exchange (BVB) and on the London Stock Exchange (LSE) in a statement which was published on the London Stock Exchange, on Friday, May 30.

The energy minister said that this offer will be the largest listing ever in the history of the Romanian Capital market.

The offer consists of 177 million new shares, representing 105 percent of the company’s total number of existing shares. They include shares and GDRs (global depository receipts), with one GDR standing for four shares, the company announced.

Before launching the offer, the Government must approve the selling price, or price range, for the shares. Electrica also needs to get the approval from the Romanian Financial Supervision Authority (ASF) on the offer prospectus.

Andrei Chirileasa, andrei@romania-insider.com