London Stock Exchange welcomes Electrica to its Main Market

London Stock Exchange welcomes Electrica to its Main Market

London Stock Exchange today welcomes S.C.D.F.E.E. Electrica S.A, the leading distributor and supplier of electricity in Romania, to its Main Market, after the successful finalization of the largest Romanian initial public offering to date.

Electrica raised approximately RON 1.95 billion (USD 605 million) following its recent initial public offering and will invest the proceeds in, among other, its regulated electricity distribution network.

The IPO consisted of an offering of shares and GDRs. The shares were admitted to trading on the Bucharest Stock Exchange and the GDRs on London Stock Exchange through the International Order Book. The final offer price was set at RON 11/share and USD 13.66/GDR, valuing Electrica at RON 3.81 billion (USD 1.18 billion).

Victor Ponta, Prime Minister of Romania, stated:

"We are delighted to be here to mark Electrica’s first day of trading, following the privatisation of one of the most important companies in Romania’s energy sector. Electrica has set a new record amongst Romanian companies in terms of IPO proceeds. The success of Electrica’s listing is a natural reflection of the strength and soundness of the Romanian economy, which has recently posted some of the highest growth rates in the EU. This success also speaks of the attractive returns that investors can find in Romanian companies and of the remarkable outcome of our efforts to secure an alternative financing source for our companies’ investment programmes and sustainable development."

The CEO of Electrica, Ioan Rosca, said:

"We are pleased that Electrica’s initial public offering has concluded successfully and allows us to implement our ambitious investment programme to align us with European industry trends. We will create value for our shareholders through investing the IPO proceeds mainly in our distribution network, where we can benefit from a favourable regulated return for these types of investments. It is our intention to distribute dividends based on a guidance of approximately 85% of consolidated profit attributable to shareholders."

Consortium representatives (Ken Robins, Head of Equity Capital Markets for EMEA, Citigroup;

James Stewart, vice-chairman in charge with Treasury and Capital Markets, Raiffeisen Bank; Laurent Cassin, Head of Equity Capital Markets for Northern & Central Europe, Société Générale) commented:

"Electrica’s $605m IPO represents the largest ever Romanian offering and is the first primary-only initial public offering of a Romanian company with a dual listing on both the Bucharest Stock Exchange and  London Stock Exchange and the transfer of the majority by the Romanian State. The Consortium is delighted to have successfully executed such an important project for the Romanian State and Electrica, and to have achieved a balanced mix of high quality, long-only institutional as well as retail investors in the Electrica IPO."

Citigroup Global Markets Limited, Raiffeisen Bank S.A. and Société Générale Corporate & Investment Banking are Joint Global Coordinators and Joint Bookrunners for the offering, BRD-Groupe Société Générale S.A. - Manager and SSIF Swiss Capital S.A. - Distribution Agent.