Transelectrica IPO, oversubscribed 6.5 times

Transelectrica shares that were put on sale through an initial primary public offering were oversubscribed by 6.46 times, with investors submitting bids for 47.38 million shares, totalling a value of 796.08 million RON, the company’s representatives announced yesterday.
On June 14, Transelectrica put up for sale around 7.33 million shares, at a price of 16.8 RON/share. The offering closed on June 28.
The overall level of over-subscription on the tranche allocated to major investors, with subscriptions topping 500,000 RON, stood at 839 percent. Altogether, 141 subscriptions were registered for 36,910,488 shares, with the subscribed value amounting to 620 million RON.
A total of 4,720 subscriptions were registered for the tranche allocated to small investors, for 10,475,899 shares, and the value of subscriptions amounted to 175.9 million RON. The level of over-subscription was of 357 percent.
The total number of investors amounted to 4,861.
At present, Transelectrica has a share capital worth of approximately 660 million RON, made up of around 66 million shares. The Economy and Trade Ministry is the majority stakeholder in the company, holding 85 percent of its stock.
The offering was handled by Alpha Bank Romania, BRD-Groupe Societe Generale and Raiffeisen Bank, which will collect a 2.25 percent fee of the value of the offering.
The share capital increase will be approved during the Extraordinary General Meeting of Shareholders scheduled for July 14, with the operation to be recorded with the Trade Registry on July 24.
According to the company estimates, the shares will start being traded on the Bucharest Stock Exchange on August 7.
Transelectrica in late May transferred a 15 percent stake of its shares to Fondul Proprietatea (Property Fund), which was created to compensate building owners who were dispossessed during the communist regime.
Another 5 percent stake of the share capital will be transferred pursuant to Law 10, to compensate the persons who suffered losses during the communist regime.