Hidroelectrica IPO to take place only on Bucharest bourse - minority shareholder

The proceeds from the partial or entire sale of the package of shares during the secondary public offering will be distributed to Fondul Proprietatea's shareholders as special dividend within three months after they have been collected, Fondul Proprietatea said in a statement filed with the Bucharest Stock Exchange.

The item was added on Fondul Proprietatea's extraordinary shareholder meeting agenda at the request of the finance ministry, which owns a 5.9726% stake in Fondul. Other shareholders in Fondul Proprietatea are legal persons with a total 50.72% stake, individuals with 24.26%, The Bank of New York MEllon with 14.11% and NN Private Pensions Fund with 10.89%.

In August, the Romanian government announced that Fondul Proprietatea will launch an IPO of up to 19.94% interest in Hidroelectrica by the end of the first half of 2023.

In April, Fondul Proprietatea said that the dual listing is critical in order to achieve the listing of 15% of the shares of Hidroelectrica and in the absence of such a listing, the main risk is that the size of the transaction would have to be reduced, with negative impact on the value of the company and the further evolution of the share price post-listing. Further on, a successful dual listing will help the government to fulfil the requirement under the National Resilience and Recovery Plan to list a stake of at least 15% of Hidroelectrica by June 30, 2023.

Hidroelectrica is 80.06% owned by the Romanian state, while Fondul Proprietatea owns 19.94%. The company has in its portfolio 209 hydro power plants with a total installed capacity of 6,482 MW. The company also operates a 108 MW wind farm in the eastern county of Constanta.

Fondul Proprietatea's shares traded 0.53% higher at 1.896 lei as at 1600 CET on Tuesday on the Bucharest Stock Exchange.

(1 euro=4.9032 lei)