The initial public offering (IPO) of Romgaz has been a success, with the underwriting having been completed for a price of RON 30 per share and the total raised standing at RON 1.734 billion (EUR 390.0 million or USD 534.63 million), Minister-delegate for Energy Constantin Nita said Friday. The price bracket for the Romgaz IPO was RON 24 – RON 32 per share.
Small investors bought over 20 per cent of the shares; Romanian institutional investors another 20 per cent; an intentional financial institution brought over 13 per cent of the stake, international share investors 11 per cent, while investors in global depository receipts (GDR) took over 36 per cent. As far as the institutional investors are concerned, 40 per cent of them are from Romania, 27 per cent from the UK, 16.5 per cent from the US and 5 per cent from Poland. The initial tranche for small investors was upwardly adjusted by 2.89 million shares (5 per cent), to 20 per cent of the total offering. Head of the Privatisation Directorate General of the Department of Energy Gabriel Dumitrascu says the total demand of the institutional investors was of EUR 1.7 billion, with the IPO having been 5.4 times underwritten in excess of their tranche, or 4.5 times when the retail investors are factored in. ‘This was a success story, with a huge number of underwritings that exceeded even the expectations of our consultants. This is the 3rd listing of the Department of Energy this year, and the other two were also successfully completed. Interest in Romgaz was higher than the interest in the two other companies,’ said Nita. The IPO that entailed a 15-per cent stake in Romgaz, the most valuable Government-run company in Romania, started on October 22 and ended on October 31, 2013.
15 pc increase in Hidroelectrica shares package for stock exchange
In the coming year, the state will sell 15 percent of power generating company Hidroelectrica instead of 10 percent, as initially planned, Constantin Nita, Minister Delegate for Energy, stated. The new figure was agreed upon after discussions with the IMF and the offer is scheduled for July 2014, Nita said on Friday. In order to change the shares package it is necessary to repeat the selection process for an intermediary, Gabriel Dumitrascu, Head of the Privatization Division within the Energy Department, stated. In April 2012, an association consisting of BRD (corporation leader), Citigroup, Societe Generale, and Intercapital Invest was selected to mediate the Hidroelectrica listing. According to Nita, Electrica will also be listed in the coming year through an offer for 51 percent of shares. Hidroelectrica sold energy worth EUR 20 million last week on the OPCOM exchange market through 11 contracts, the energy company announced Friday. The quantity of energy sold was 470,520 MWh for a mean price of RON 174.56 per MWh.