FTSE Russell will include the shares of Romanian hydro power company Hidroelectrica (BSE: H2O) in the FTSE Global All-World Index, FTSE Global Large Cap Index and FTSE Emerging Index just one week after the company’s debut on the Bucharest Stock Exchange.

Hidroelectrica’s shares will be part of the three FTSE Russell indices as of July 19, 2023.

At the same time, the shares of the renewable energy producer will be included in the MSCI Frontier and MSCI Romania indices of the global index provider MSCI. Hidroelectrica will be effectively included in the MSCI indices starting on July 26, 2023, according to an official announcement.

This is the first time that a newly listed company on the Bucharest Stock Exchange is included after the first day of trading by the two global index providers FTSE Russell and MSCI, benefiting from the fast listing mechanism.

“Hidroelectrica is writing history in this period at Bucharest Stock Exchange, being the focus of investors' attention. We are pleased that this interest is expressed both by the very high trading volumes on the first day, but also by the inclusion of Hidroelectrica shares in the FTSE Russell Emerging Markets and MSCI Frontier Markets indices through this rapid inclusion mechanism. Hidroelectrica will also play an important role in Romania's path towards promotion to the Emerging Market by MSCI, along with fulfilling the qualitative and quantitative criteria of the index provider,” said Radu Hanga, Bucharest Stock Exchange President.

Hidroelectrica was also included in the Bucharest Stock Exchange’s BET index on the first day of trading (July 12) and pushed the BET up by 1.4% to a 15-month high.

Hidroelectrica’s shares closed the first day of trading at RON 110, up by 5.77% compared with the IPO price of RON 104. The investors traded H2O shares worth RON 760 million (EUR 154 mln) on July 12. The company reached a market capitalization of RON 49.5 bln (EUR 10 bln).

“Today, Hidroelectrica set a new record on the Bucharest Stock Exchange in terms of the daily value of the liquidity on the equity segment, that reached over RON 821 million, well above the previous record of RON 326.7 million, from December 19, 2018,” said Adrian Tanase, Bucharest Stock Exchange CEO.

In FTSE Russell indices for Emerging Markets, Romania is represented by 14 companies: Banca Transilvania, Hidroelectrica, MedLife, Nuclearelectrica, OMV Petrom, One United Properties, Teraplast, Aquila, Bittnet Systems, Bucharest Stock Exchange, Conpet, Purcari Wineries, Sphera Franchise Group and Transport Trade Services.

At the same time, in MSCI Frontier Markets indices, Romania has 12 companies: Banca Transilvania, BRD Groupe Societe Generale, Electrica, Hidroelectrica, Medlife, Nuclearelectrica, OMV Petrom, One United Properties, Romgaz, Teraplast, Transelectrica and Transgaz.

Hidroelectrica shares started trading on Wednesday, July 12, on BVB’s Main Market, following the largest IPO ever held on the capital market in Romania, of RON 9.28 bln (EUR 1.87 bln). This is the largest IPO in Europe and the third largest globally so far this year.

editor@romania-insider.com

(Photo source: BVB)