After the IPO in mid-2023, Hidroelectrica [H2O RO Equity] currently trades at ATH. We decided to bring you a brief overview of the IPO of Hidroelectrica’s share price and its further impact on the Romanian stock exchange.
After being probably the hottest topic on the regional equity market, Hidroelectrica [H2O RO Equity] was listed in mid-2023 at the IPO share price of RON 104 on the Bucharest Stock Exchange (BVB). Since then, the company’s share price reached c. RON 128 near the end of 2023. With the start of this year, the company breached the mentioned levels and is currently trading at ATH of around RON 132 per share.
Hidroelectrica’s share price [in RON, since IPO]
Source: Bloomberg, InterCapital Research
H2O’s IPO resulted in oversubscription multiple times at the Offer Price, with strong investor demand from investors globally, including from Romania. During its 1st trading day, app. EUR 153m of the stock was traded, and the share price increased by 5.8%.
Soon after, Hidroelectrica announced that it would be included in several new indices. During mid-July already, Hidroelectrica was included in the FTSE Global All-World Index, FTSE Global Large Cap Index, and FTSE Emerging Index. Secondly, MSCI announced that also during July 2023, Hidroelectrica’s shares would be included in the MSCI Frontier and MSCI Romania indices. Finally, Romania should become an emerging market with Hidroelectrica being the tipping point needed for Romania to be classified as “Emerging” by MSCI.
Currently, the company is traded at ATH with a strong 9M 2023 reported with top-line growth amounting to 32%, EBITDA increase of 35%, and bottom line of RON 5.2bn (42% YoY increase with comparable period). Results were driven by strong performance across power generation and electricity supply business segments. Further, the analyst coverage of Hidroelectrica is overall positive with target prices around the current valuation.
Hidroelectrica key financials (9M 2023 vs. 9M 2022, RONm)
Source: Hidroelectrica, InterCapital Research
