According to Reuters, Premier Energy Group, one of the largest renewable energy players in Romania, announced its intention to proceed with an IPO of its ordinary shares on the Bucharest Stock Exchange.
Founded in 2012, Premier Energy is vertically integrated renewable power generation and distribution and supply of electricity and natural gas. It describes itself as one of the largest renewable energy players in Romania and Moldova where it has over 1,000 MW under ownership, management or development. Growth has been supported by a successful track record of strategic, value-enhancing add-on acquisitions. To date, the Company has made over 25 add-on acquisitions since 2013 in both Romania and Moldova. The Group’s strategic goal is to emerge as one of the regional leaders in the transition to green energy.
Premier Energy Group seeks to raise EUR 100m, while the biggest shareholder, EMMA Capital, intends to sell existing shares of app. EUR 25m. Following the conclusion of its IPO, EMMA Capital will remain the majority owner of Premier Energy. The Company will use the proceeds of the Offering to fund future growth, especially in the renewables production segment.
The IPO will take place after the approval of the Prospectus by the Romanian Financial Supervisory Authority (ASF). The IPO will consist of a public offering to retail and institutional investors in Romania and an offering to eligible international institutional investors, in accordance with the provisions of the Prospectus.
Key financials [2021 – 2023, EURm]
Source: InterCapital Research
As per the company’s words – „With our vertically integrated and diversified business model allowing us to capture margin throughout the value chain and providing financial stability, we have a very attractive equity story to tell potential investors.“ In 2023, the company recorded revenues of EUR 912m, while normalized EBITDA amounted to EUR 89.7m. The company has a track record of numerous acquisitions in both Romania and Moldova, with the most recent one being CEZ Vanzare – a supply business in Romania. The group aims to capitalize on the acquisition by cross-selling its gas supply to the new 1.4m newly acquired clients. Taking the acquisition into account, Premier Energy Group aims to serve c. 2.4m clients (+1.4m YoY) with electricity and natural gas, the vast majority being households & small businesses. If we were to take the mentioned acquisitions into account, FY 2023 shows even further amplified results on the back of consolidation. Overall, the Romanian and Moldovan markets are supported by healthy historical and forecasted GDP growth in stable currency environments and growing energy needs. Both economies are expected to grow faster than the EU27 average between 2023 and 2025. Further, Moldova is targeting full EU membership by 2030, with the accession path requiring the adaptation of its energy legislation and integration of its energy market.
The company is expected to start trading on the BVB as soon as May.
