Small investors show high demand in Electrica IPO


Shares placed at their disposal were oversubscribed almost threefold.

Small investors have oversubscribed almost three times the amount of shares placed at their disposal as part of Electrica’s initial public offering, the 5 percent discount offered to them in the first five days of the operation attracting orders for shares worth over RON 391 M (EUR 89 M).
Thus, the tranche for small retail investors was subscribed 2.96 times, orders for 36.77 million shares being registered on Friday according to the brokers, compared to a volume of 12.403 million shares available. A volume of 7.726 million shares were subscribed through orders for the guaranteed package of up to 1,000 shares. The guaranteed orders are limited to 10 million shares. In what concerns the discount segment, retail investors subscribed 29.044 million shares. Small retail investors that subscribed more than 1,000 shares as part of Electrica’s IPO in the first five days of the operation, namely from June 16 to June 20, will benefit from a 5 percent discount in the final price that results from the offer. The distribution of the shares will be pro-rate, depending on demand and the number of shares subscribed through orders for the guaranteed package of up to 1,000 shares.
The final price will be established after the IPO is over, when the subscriptions made on the tranche for institutional investors will be known. The tranche consists of 150.610 million shares, or 85 percent of the shares put up for sale. June 25 is the final day for subscriptions and the listing could take place at the start of July.
Investors have turned their attention towards the Electrica IPO in recent days, the stock exchange’s turnover being limited in the first three sessions last week. On Thursday and Friday the market liquidity slowly returned to normal levels for this period, also because of the transactions taking place on the secondary market.
The Bucharest Stock Exchange closed on Friday without significant variations, the BET-C general index registering a growth of 0.09 per cent. On the other hand, the BET index of the ten most-liquid shares dropped by 0.1 per cent.

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