Yesterday, Hidroelectrica released the pricing and allocation details for its IPO. According to the release, the offer has been priced at RON 104, implying a market cap of RON 46.8bn (EUR 9.4bn).
The IPO Offer Period has ended for Hidroelectrica, and yesterday it released the pricing and allocation details. In the release, we can see that the Offer price has been set at RON 104 per share (the initial range of the IPO amounted from RON 94 to RON 112). This would mean that the market capitalization is set at RON 46.8bn or EUR 9.4bn. As detailed in the prospectus, the retail investors in Romania were entitled to a 3% discount from the Offer price for applications submitted on the first five business days of the Offer Period. The final discounted offer price for these retail shares amounts to RON 100.88 per Offer share.
Furthermore, the offer includes all of the 89,708,177 shares, representing 19.94% of the total issued capital and Fondul’s entire holding in the Company. As a reminder, the initial offer was for 78,007,110 shares (17.34% of the share capital), with an over-allotment option of 2.6% (or 11,701,067 shares).
Hidroelectrica further notes that the Offering was oversubscribed multiple times at the Offer Price, with strong investor demand from investors globally, including from Romania. The formal allocation also took place yesterday, 5 July 2023. Also, Hidroelectrica and Fondul jointly decided to re-allocate shares from the Institutional Tranche to the Retail Tranche following which Institutional investors were allotted 71,766,542 shares, while the retail investors were allotted 17,941,635 shares. This represents 80% and 20% of the offer, respectively.
The Cornerstone Investors purchased in aggregate RON 2.24bn in shares at the Offer Price, subject to certain customary conditions. The settlement will take place on 10 July 2023, while the Admission and the start of trading on the BSE under the symbol “H2O” is expected to take place on 12 July 2023. Hidroelectrica further notes that immediately following the Admission, the Company’s shares will be included in the BET index of the BSE.
Lastly, Hidroelectrica and Fondul are subject to a lock-up arrangement during a period from 22 June 2023 until the date falling 180 days after the date of Admission. On the other hand, the majority shareholder (the Romanian government) is subject to a lock-up arrangement during a period from 22 June 2023 until 12 months after the date of Admission, subject to certain exceptions disclosed in the Prospectus.
The full press release can be read here.