BUCHAREST, Feb 23 (Reuters) – Romania’s state-owned hydroelectric power producer Hidroelectrica’s planned IPO on the Bucharest Stock Exchange is set to take place in May or June, board member Karoly Borbely said on Thursday, pointing to a later timeframe than expected.
The IPO consists of shares in investment fund Fondul Proprietatea (FP.BX), led by investment manager Franklin Templeton, Hidroelectrica’s only minority shareholder. In November, the fund said the listing was expected in April-May.
“The first window is early May, the second somewhere in mid-June,” Borbely said at an energy seminar organized by financial daily Ziarul Financiar.
“We have just completed early look meetings with investors, advisers are now working on the draft prospectus to be filed with the Financial Regulator in the second half of April.”
Fondul had received government approval to list a 15% to 20% stake in the company in a deal initially valued at 2.5 billion euros ($2.65 billion).
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It had advocated a dual listing in Bucharest and London to improve the company’s valuation, but its shareholders opposed the plan. Fondul has said listing the company only in Bucharest could mean its stake being reduced.
Set up as a fund to compensate Romanians for assets confiscated during communism, Fondul holds minority stakes in a number of state-owned companies, including 20% of Hidroelectrica.
The IPO involves the sale of Fondul shares in Hidroelectrica, not government shares. However, listing the company by mid-2023 is part of requirements the government has agreed with the European Commission in exchange for post-pandemic recovery funds.
Hidroelectrica is Romania’s largest electricity producer, producing a third of its electricity. Borbely said the company plans to expand its capacity by another 300 MW in the short term through new investments.
Various government plans to list Hidroelectrica have been in place for around 15 years.
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Reporting by Luiza Ilie; Edited by Jason Hovet and Muralikumar Anantharaman
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