Franklin Templeton, alternative investment fund manager and sole administrator of Fondul Proprietatea, announced that the Fund and Hidroelectrica had selected the consortium of investment banks, a key step for the planned IPO.
According to Ziarul Financiar, citing sources familiar with the matter, 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.
Rothschild & Co is financial advisor to Fondul Proprietatea in this transaction. Hidroelectrica’s listing will come after an initial public offering (IPO) in which Fondul Proprietatea plans to sell at least 15% of the company’s shares, out of its 20% stake. The Romanian state, which holds an 80% majority stake in Hidroelectrica, has approved the listing but is unwilling to sell shares.
Hidroelectrica is the most valued state company in Romania and, based on its recent results, probably the most valued company in the country. Fondul Proprietatea’s half-year report indicated an overall valuation of 12.9 billion euros for Hidroelectrica. Based on this figure, an IPO of 15% of the company’s shares would represent more than 1.9 billion euros, which would make it by far the largest listing in Romania’s history.
Hidroelectrica was Romania’s most profitable company in 2021 and rising energy prices also continued to drive up its profits in 2022.
(Photo source: Facebook/Hydroelectrica)