Romania's Hidroelectrica confirms mid-range IPO pricing (updated)

VERBUND AG

05/07/2023 07:29

(Adds detail and CEO comment)
       BUCHAREST, July 5 (Reuters) - Romanian energy producer
Hidroelectrica's initial public offering on the Bucharest Stock
Exchange has been priced at 104 lei ($22.87) per share, it said
on Wednesday, implying a market capitalisation of 46.8 billion
lei ($10.29 billion).
    One of Europe's largest IPOs so far this year will sell
existing shares held by Fondul Proprietatea  FP.BX , a fund
managed by U.S. asset manager Franklin Templeton  BEN.N .  
    The final pricing offer is around the middle of the original
indicated range of 94-112 lei. The company, which will list on
July 12, said the IPO amounted to Fondul's entire 19.94%
holding. 
    The Romanian government will retain its 80% stake in the
company, which has power capacity of 6.3 gigawatts from 182
hydroelectric plants across the European Union.
    "We are happy to see the strong investor interest which has
driven a successful outcome of Hidroelectrica's IPO," said Chief
Executive Bogdan Badea. 
    Last year Hidroelectrica's adjusted EBITDA margin hit 64% of
revenue, twice the 30% margin reported by Austria’s Verbund
 VERB.VI , its closest competitor. Verbund's shares have lost
more than a fifth of their value on the Vienna Stock Exchange in
the past 12 months.     
    Verbund is one of Europe's largest generators of electricity
from hydropower. 
    Hidroelectrica is Romania's biggest energy producer,
accounting for a third of its electricity. Various state plans
to list the company have been around for more than a decade.
($1 = 4.5483 lei)

 (Reporting by Luiza Ilie
Editing by David Goodman)
 ((luiza.ilie@thomsonreuters.com; +4021 527 0312; https://www.reuters.com/journalists/luiza-ilie))