34.1 C
July 3, 2022

Romania could attract foreign investors with Nuclearelectrica listing

Collected funds to be used by the company primarily to finance the necessary investment projects for units 1 and 2 of CNE Cernavoda.

The Nuclearelectrica listing started yesterday and the subscription process will be included on 20 September, HotNews.ro notes. The last similar offered was made in December 2007 when the state sold 10% of Transgaz Medias shares on the stock exchange market. In the first hours of the listing, small investors subscribed more than half of the shares available for their section, representing 10% of the offer. Brokers say the high level of interest was determined by the 8% discount for orders made in the first three days.
This event is a big step in developing the local stock market and attracting new investors. Everyone hopes the offer is subscribed and ends in favourable conditions, but no one dares to dream it will match the Transgaz subscription.
According to Mediafax, state contribution will drop from 90.27% to 81.28% of the shares (if Fondul Proprietatea contributes to the capital increase) or to 82.07% (otherwise). If Fondul Proprietatea buys the shares it is entitled to be based on the preference right, it will be left with 9.73%; otherwise, the contribution will drop to 8.84% of the shares.
According to the offer chart, the shares will be allotted on September 23, 2013, the transaction will take place on September 26 and the shares will be deducted on October 1, 2013. According to the prospectus approved by the Insurance Supervisory Commission, net funds obtained from the primary offer range between RON 272.8 million and RON 269.3 million, is all the shares are sold, ‘Bursa’ newspaper reports.
The collected funds will be used by the energy company primarily to finance necessary investment projects for units 1 and 2 of CNE Cernavoda. The total amount of expenses incurred for the offer range between RON 9 million and RON 10 million and will be borne entirely by Nuclearelectrica.
Nuclearelectrica CEO Daniela Lulache recently showed that Nuclearlectrica is the main beneficiary of the Romanian energy market’s deregulation and the main risk the nuclear energy producer is prone to is the trend of energy consumption in Romania. In turn, BVB (Bucharest Stock Exchange Market) CEO Ludwik Sobolewski said he was confident the public offer would be a success.
Nuclearelectrica estimates an exploitation profit of RON 449 M in 2017
The Nuclearelectrica management estimates that the company will report an exploitation profit of RON 449 million in 2017 (compared to RON 227 million in 2013) based on a turnover of EUR 2.29 billion (compared to RON 1.89 billion this year).
The initial public offer (IPO) consists of three instalments, of which the biggest – 85% of shares offered – is allocated to institutional investors. 10% of the shares are destined to small subscriptions and 5% to large subscriptions.
Tradeville estimates a price of RON 12.17 /share for the following 12 months
Using an assessment model for the dividends that could be paid by the company in the years ahead, Tradeville came up with a target price of RON 12.17 for the next 12 months, Agerpres informs. “We are expecting the interest of institutional investors to prop up the SNN quotes in the first trade sessions,’ reveals an analysis of stock broker Tradeville. They point out that this is the first IPO at the Bucharest Stock Exchange (BVB) since 2008 in a favourable global context when the good economic fundamentals of Romania could attract the attention of foreign investors. Moreover, the corporation is the sole nuclear power operator, owning two of the world’s most efficient nuclear power reactors, churning out stable, inexpensive energy.

Related posts

Vodafone Romania and Orange Romania, agreement for network sharing

Nine O' Clock

Garanti BBVA Leasing signs a EUR 20 million loan agreement with BSTDB, aiming to support SMEs


Carrefour launches 4th Quality Supply Chain for Veal. A partnership for the promotion of Romanian products and local producers

Nine O' Clock