July 5 (SeeNews) - Romania's majority state-owned hydropower producer Hidroelectrica [BSE:H2O] said on Wednesday that its initial public offering (IPO) was priced at 104 lei ($22.9/21 euro) per share, implying a market capitalisation of 9.4 billion euro ($10.3 billion).
The offer, including the additional shares over-allotted for stabilisation purposes, represents 89,708,177 shares, amounting to 19.94% of Hidroelectrica’s total issued share capital as well as Romanian investment fund Fondul Proprietatea’s [BSE:FP] entire holding in the company, the hydropower producer said in a press release.
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“We are happy to see the strong investor interest which has driven a successful outcome of Hidroelectrica’s IPO. This is a significant milestone for both Hidroelectrica and Romania, which will support our company’s long-term development," said Bogdan Badea, CEO of Hidroelectrica.
The settlement of the IPO will take place on July 10. Trading in the shares on the Bucharest Stock Exchange is expected to start on July 12. Following the admission, Hidroelectrica's shares will be included in the BET index of the bourse.
The IPO pricing of 104 lei per share is just above the mid-point of the price interval set between 94 lei to 112 lei in the prospectus. Retail investors who subscribed during the first five business days of the IPO will get a 3% discount, paying 100.88 lei per share.
Following multiple oversubscriptions from domestic and global investors, Hidroelectrica and Fondul Proprietatea reallocated shares from the institutional investor tranche to retail investors. As a result, institutional investors were allotted 80% of the shares sold in the IPO, while retail investors were allotted 20%.
The pro rata allocation factor calculated for retail investors is approximately 0.32, which entails retail investors will end up with 32 shares for every 100 shares subscribed in the IPO.
As part of the institutional tranche of the offer, three cornerstone investors purchased shares worth a cumulative 2.24 billion lei. Fondul Proprietatea granted an over-allotment option tallying 11,701,067 shares, or 15% of the offer, which is exercisable in whole or in part within 30 days of the admission.
Immediately prior to the IPO, Hidroelectrica was 80.06% owned by the Romanian state, while Fondul Proprietatea held a stake of 19.94%. Hidroelectrica has a 100% renewable portfolio with an installed hydropower production capacity of approximately 6.3 GW and an installed onshore wind capacity of 108 MW from the Crucea wind farm in the southeastern county of Constanta.
Fondul Proprietatea shares traded 1.37% higher at 1.926 lei as at 1017 CET on Wednesday on the Bucharest Stock Exchange.
(1 euro=4.9503 lei)
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