The Economy and Trade Ministry, the owner of the national electricity transport company Transelectrica, is planning to float 7.3 million shares on the Bucharest Stock Exchange this autumn. The stock will have a nominal value of 730bn ROL (20.2m euros), sources close to the discussions told Ziarul Financiar.
The floatation will be performed in a capital increase operation through an issue of new stock by the company intended to account for 10% in the value of the raised share capital.
Transelectrica was expecting to sign a contract yesterday for an advisory role in the stock listing with the brokerage consortium made up by Alpha Finance Romania, Raiffeisen Capital & Investment and BRD Securities-Groupe Societe Generale.
a??The Economy Ministry is planning to propose the listing of a 10% stake in the companya??s raised share capital during a government session. We hope the listing of Transelectrica stock will take place during the September-October period,a?? the same sources said. Initially the authorities announced the Transelectrica floatation operation would involve a stake of 5-10%, since the ministry also plans to introduce trading to other companies in the system, including gas producer Romgaz, gas transporter Trans Medias and branches of Electrica.
The most recent floatation on the Bucharest Stock Exchange, done by IT company Flamingo aroused a lot of interest from investors, with the companya??s primary public offering being oversubscribed almost four times.
Flamingo floated a 22.4% stake of its raised share capital at a price of 23,000 ROL/share. The generated funds of 12.4 million euros were to be used to expand the companya??s retail network, according to a company announcement.
a??The funds derived from listing on the Stock Exchange will be used by the company to modernise the power transportation infrastructure,a?? announced Ion Merfu, the general manager of Transelectrica.
The energy company has a share capital of 6,595bn ROL (182.5m euros), which corresponds to a number of 65.95 million shares with a face value of 100,000 ROL/share. The floatation operation will be performed using an issue of new shares for which the initial trading value will be set in autumn.
Transelectrica is seen by the Romanian authorities and investors alike as one of the most attractive companies on the Romanian power market. Given its solid financial profile and its record on the financing market, after Petrom Transelectrica has been one of the companies most intensely targeted by banks looking to offer loans.