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Bucharest
October 24, 2021
BUSINESS

10 pc package of Nuclearelectrica shares sold for EUR 63 M

According to Constantin Nita, the Minister in charge of Energy, around 30 per cent of the investors who purchased shares at the state company are from the United States.

The Nuclearelectrica state company (SNN) has sold 10 per cent of shares through initial offer on the stock exchange for RON 281.1 million (EUR 63 million), the minimum amount for such an operation. The bonds were issued through a capital increase to which the Fondul Proprietatea contributed by RON 30.6 million (EUR 6.8 million).
“The offer was a success. (…) I take this opportunity to thank all those involved in the process. (…) It is the second success after Transgaz, which means Romanian energy companies pose interest”, the Minister in charge of Energy, Constantin Nita stated yesterday at a press conference. He added that he hopes Nuclearelectrica’s profit this year is double compared to last year, when the company reported a low profit.
Nuclearelectrica has attracted RON 312.4 million (EUR 69.8 million) through a capital increase by which it issued shares amounting to 11.077% of share capital. The price of the offer on selling the 10 per cent package ranged from RON 281.8 million to RON 379.4 million, according to the bonds’ buying price, which ranged from RON 11.2 to RON 15. In the offer, institutional investors and large retail investors purchased the shares for RON 11.2, the minimum offering price, while small retail investors purchased them for RON 10.304 (8 per cent discount granted for subscriptions in the first three days of the offer) and RON 10.864 (3 per cent discount for fourth day subscriptions). Institutional investors received 85 per cent of the offer, large retail investors received 5% of the bonds, and small investors 10 %. Thus, institutional investors purchased shares of RON 241.5 million (EUR 54.2 million), retail investors bought shares of RON 14.2 million (EUR 3.2 million) and small investors purchased bonds of RON 26.1 million (EUR 5.8 million). Small investors placed 3,552 orders worth RON 214.8 million (EUR 48.2 million) and the reported subscription was 5.6 times. Consequently, each investor will receive only 17 per cent of subscribed shares.
Listing money used to increase EnergoNuclear capital
The large installment (of over 15,000 shares) was oversubscribed 2.3 times and the amounts placed by these investors amounted RON 44 million (EUR 9.9 million). 69 orders were placed in this installment and investors will receive 43% of subscribed shares. In the institutional investors’ installment, the numbers of placed orders and the volume of requested shares have not been made public; the only available information is that the segment has also been oversubscribed.
Both larger and smaller retail investors placed subscription order for a maximum price of RON 15, while institutional investors were able to subscribe any quotation ranging from RON 11.2 to RON 15. The final offer price was set according to the institutional investors’ subscriptions. 8% and 3% discounts were applied to small retail investors, depending on their subscription date.
“Almost 30% of the investors who have purchased Nuclearelectrica shares are from the United States”, the Minister in charge of Energy, Constantin Nita stated. He pointed out the money received by Nuclearelectrica following the capital increase and the stck exchange listing should be used to increase EnergoNuclear capital, as the mixed company is going to build nuclear reactor numbers 3 and 4. Nuclearlectrica owns majority capital at EnergoNuclear. The other shareholders are Enel (Italy) and ArcelorMittal Romania.
The shares sold in the offer will have allocation rights attached to them, so investors can benefit from the purchased bonds even before they are transferred in the accounts. The allocation rights could be listed on BVB (the Bucharest Stock Exchange) on October 4.
No other state companies will be listed
Listing Nuclearelectrica on BVB through initial offer was the first such operation in the last six years. The Minister in charge of Energy said the state has no other similar operations scheduled, apart from the stock exchange listings of several state companies planned for 2014. “We are not listing the shares of other companies on the stock exchange, except for the ones scheduled for next year: Electrica, Hidroelectrica and energy complexes Oltenia and Hunedoara”, Nita explained. The stock exchange listing of these companies and other state controlled companies were undertaken by the government before the International Monetary Fund, the World Bank and the European Commission. This year, the state sold 15 per cent of Transgaz Medias (TGN) shares on the stock exchange through a secondary offer and listed Nuclearelectrica through initial offer. By the end of the year, gas producer Romgaz Medias will also have been listed on the stock exchange through initial offer. The stock exchange listing of several minority share packages for energy companies have been repeatedly postponed in recent years.
No funds for energy strategy
Following questions from journalists, the Minister in charge of Energy, Constantin Nita admitted the energy strategy would not be achieved this year due to limited financial resources, HotNews.ro notes. The Minister in charge also stated “a vision” on reorganizing the energy system has been developed, but law amendments are necessary for it to become a reality. Romanian authorities have been discussing achieving a new energy strategy adapted to the market for 2 or 3 years. “The national energy strategy project will be carried out by a company selected through auction in late August or early September”, Nita said in July.

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