Premier Energy to launch Bucharest IPO

As part of the offering, Premier Energy seeks to raise around 100 million euro ($106.4 million) through a capital increase with the exclusion of pre-emptive rights, while its parent company Emma Capital plans to sell existing shares worth about 25 million euro, the power distributor said in a statement.

The IPO will include a 15% over-allotment option provided by Emma Capital. Following the completion of the IPO, Emma Capital will continue to hold the majority of shares in Premier Energy Group.

The offering, which targets retail and institutional investors in Romania as well as eligible institutional investors abroad, will take place after the IPO prospectus receives approval from the Romanian Financial Supervisory Authority. Following a successful IPO, Premier Energy will apply to have its shares admitted to trading on the regulated market of the Bucharest Stock Exchange, BVB. Shares in Premier Energy will be offered and traded in Romanian lei.

"While we are proud to be one of the fastest growing privately-owned energy infrastructure companies in Southeast Europe, now is the right time for Premier Energy Group to conduct an IPO and to leverage the exciting opportunities for accelerated development that a public listing on the Bucharest Stock Exchange will deliver," Premier Energy Group CEO Jose Garza said.

Alpha Bank Romania and BT Capital Partners will act as joint bookrunners in the offering. The date of the IPO is subject to capital market regulations but could be finalised in May, as per the statement.

In 2023, Premier Energy Group booked a consolidated net profit of 78.8 million euro on consolidated revenues of 912 million euro, according to selected financial data released by the company in the same statement.

Established in 2012, Premier Energy Group is the third largest natural gas distributor and supplier in Romania. It is also the largest electricity distributor and the largest supplier in Moldova, providing power to some 70% of that country's population. The company has a contracted renewable electricity generation portfolio of more than 1,000 MW.

($=0.9394 euro)