Franklin Templeton, as fund manager and sole director of Fondul Proprietatea (FP), announced that the fund and Romanian hydroelectric company Hidroelectrica had selected a consortium of investment banks, a key step for the planned IPO. of Hydroelectrica.

After years of delays, the IPO of Hydroelectrica, Romania’s largest electricity producer, is expected to take place by the end of June 2023, the Romanian government – its majority shareholder – announced in July.

FP did not name the selected investment banks. However, according to Ziarul Financiar citing sources close to the operation, these are Citi, Morgan Stanley, Erste and Jefferies (global managers), Bank of America, Barclays, UBS, UniCredit and Wood (co-managers) and respectively Banca Transilvania -BCTP and Swiss Capital (co-lead managers).

The role of selected investment banks in the IPO process is to recommend the optimal transaction structure, promote the Hidroelectrica stock story to local and international investors, place securities in the IPO, as well as assisting with the listing process.

“We firmly believe that the IPO and subsequent listing of Hidroelectrica will bring significant benefits to the Romanian capital markets and to Romania as a whole, as it has great potential to attract significant domestic and foreign investors for Romania’s main power generation company,” said Ilinca von Derenthall, president of the candidates’ council.

Fondul Proprietatea, which owns almost 20% of Hidroelectrica, hopes to succeed in convincing the government to approve the listing of the company on an external stock exchange, and not only on the Bucharest Stock Exchange (BVB), Daniel Naftali, vice-president senior fund administrator Franklin Templeton Bucharest, deputy portfolio manager of Fondului Proprietatea and member of CS Hidroelectrica, said recently in an interview with Profit.ro.

According to him, most likely, the listing of the hydroelectric producer will take place in February next year.