September 9 (SeeNews) - Romanian investment fund Fondul Proprietatea [BSE:FP] announced that together with majority state-owned hydropower producer Hidroelectrica has selected the consortium of investment banks in relation to its planned initial public offering (IPO).
The consortium is composed of international, regional, and local investment banks, Fondul Proprietatea said in a press release on Thursday.
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The selected investment banks would recommend the optimal structure of the transaction, promote the equity story of Hidroelectrica among local and international investors, place securities in the IPO, and assist with the listing process, Fondul added.
"The selection of the investment banks marks an important step forward, as part of the preparation for the IPO and listing of Hidroelectrica. We hope to be able to complete this landmark transaction as soon as practically possible," Fondul Proprietatea portfolio manager Johan Meyer said.
In August, the Romanian government announced that Fondul will launch an initial public offering (IPO) of up to 19.94% interest in Hidroelectrica by the end of the first half of 2023. The successful completion of the listing of a substantial package of Hidroelectrica shares on the Bucharest Stock Exchange at the end of the first half of next year will allow Romania to fulfil the specific objective established in its National Recovery and Resilience Plan, the government said at the time.
At the end of March, Fondul Proprietatea said it plans to launch a initial public offering (IPO) of 15% interest in Hidroelectrica by the end of the year, seeking to raise 10.4 billion lei ($2.3 billion/ 2.1 billion euro).
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 0.31% higher at 1.9580 lei as at 0931 CET on Friday on the Bucharest Stock Exchange.
(1 euro=4.8707 lei)
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