Hidroelectrica, the largest electricity producer in Romania, officially announced on June 6, 2023 its intention to list on the Bucharest Stock Exchange, by selling a part of up to 20% of the minority shareholder Fondul Proprietatea.
The Fund received the consent of the shareholders to dispose within the Offer of its entire participation of up to 19.94%, of the total number of shares issued by the Company. The number of shares to be sold in the public offering will be determined later. The Company will not carry out a capital increase in the context of the Offer and will not benefit in any way from the funds obtained as a result of the Offer.
The offer will consist of a public offer addressed to retail and institutional investors in Romania, as well as to eligible international institutional investors. The shares will be sold and, after the Admission, traded in lei ("RON"). Admission is expected to take place in July 2023. Once admitted to trading, the Company's shares will be included in the BSE's BET index immediately after Admission.
Hidroelectrica is the largest energy producer in Romania. The group owns and operates 182 hydropower plants, five pumping stations and a wind farm that are strategically located in eight branches organized geographically on the territory of Romania. The total installed production capacity of the Company's hydropower assets is divided into storage hydropower plants, run-of-river hydropower plants and pumping stations.
The company owns a 100% renewable generation portfolio, with an installed hydroelectric generation capacity of 6.3 GW and an installed onshore wind capacity of 108 MW in the Crucea wind farm.
Between 2018 and 2022, the Company had a market share of approximately 29% considering the total energy generated and delivered in the system (according to the annual reports of the National Energy Regulatory Authority).
Hidroelectrica is one of the largest hydropower producers in Europe, with a volume of electricity generated from hydroelectric sources of 13.6 TWh in 2022, 16.9 TWh in 2021 and 15 TWh in 2020 (all of which represent the gross amount of production).
At the same time, Hidroelectrica supplies electricity on the wholesale and retail electricity markets. The Company's market share of electricity supplied to retail customers increased from 1.3% in 2020 to approximately 8% in December 2022, and the number of customers increased from 2,465 in 2020 to over 482,000 in 2022. In 2022, the Company supplied approximately 3.7 TWh of electricity to final customers, according to ANRE.
In the years ended on December 31, 2022, 2021 and 2020, the Company generated consolidated revenues in the amount of 9,452.0 million RON, 6,489.3 million RON and 3,841.4 million RON, respectively. In the same period, the Company reported annual (net) profits of RON 4,464.0 million, RON 3,116.2 million and RON 1,558.0 million, respectively.
In the first quarter of 2023, the Company obtained consolidated revenues of 3,272.1 million RON, which were generated by the increase in the total amount of energy sold (4,838 GWh in the first quarter of 2023) both in the production and supply segments This led to a total value of adjusted EBITDA of 2,184.2 million RON and a net profit of 1,723.4 million RON in the first quarter of 2023, compared to a total value of adjusted EBITDA of 1,702.7 million RON and a reported net profit of 1,287.9 million RON in the first quarter of 2022.
Immediately prior to the Initial Public Offering, the Company's shares are owned by the Ministry of Energy (80.06%) and the Fund (19.94%). The fund has held a minority stake in Hidroelectrica since its establishment in 2005.
Citigroup Global Markets Europe AG, Erste Group Bank AG, Jefferies GMBH and Morgan Stanley Europe SE are acting as Joint Global Coordinators in connection with the Offer.
Banca Comercială Română SA, Barclays Bank Ireland PLC, BofA Securities Europe SA, UBS Europe SE, UniCredit Bank AG and Wood & Company Financial Services act as Joint Holders of the Subscription Register.
Auerbach Grayson, BRD – Groupe Société Générale, S.S.I.F. BT Capital Partners S.A. and S.S.I.F. Swiss Capital S.A. are Principal Joint Managers.
Rothschild & Co Equity Market Solutions Limited is the Financial Adviser to the Fund and STJ Advisors is the Financial Adviser to the Company in connection with the Initial Public Offering.