Raiffeisen Capital & Investment and Alpha Finance Romania have successfully completed the IPO arrangement of the...
Raiffeisen Capital & Investment and Alpha Finance Romania have successfully completed the IPO arrangement of the first Romanian utility to float its shares on the bourse.
The IPO of Transelectrica S.A. represents the first step in implementing a government programme with the aim of creating a strong Romanian capital market via further IPOs of Romanian state-run utility companies.
Between June 14 and June 28, Transelectrica S.A. offered 7,329,787 new shares to domestic and international investors. The share issue is to boost the companys capital and will give no pre-emptive rights to the new minority stockholders.
The issue price was set at RON 16.8 per share. The offer consisted of a retail tranche of 40 per cent and an institutional tranche of 60 per cent. The institutional tranche was subscribed 8.4 times while the retail tranche was subscribed 3.5 times.
IPO proceeds amount to ca. EUR 35 million. The company plans to use the fresh capital for modernization and further development of the infrastructure.
Laurentiu Ciocirlan, Director Debt & Equity Origination at Raiffeisen Capital & Investment (RCI) in Romania, one of the members in the consortium that prepared the Transelectrica IPO, said:
“The fact that the offering was heavily oversubscribed, despite the difficult period on the stock markets, demonstrates investors’ increasing confidence in the Romanian business environment as the country is preparing to join the EU.“
The shares of Transelectrica S.A. will be listed on the Bucharest Stock Exchange around the end of July 2006.
The consortium was composed of Alpha Finance Romania, Raiffeisen Capital & Investment, a 100-per-cent subsidiary of Raiffeisen bank S.A. in Romania, as well of BRD Securities.