Based on the profit estimated by Hidroelectrica for this year (RON 3.3 billion or EUR 660 million), the 90% payout ratio announced by the company and the prices of the shares in the IPO, Ziarul Financiar estimates that the company may pay ordinary dividends of RON 7.32 per share next year.

This would result in yields of 6.5% to 7.8% depending on the price of the share – seen between RON 94 and RON 112, according to the Prospectus drafted by the company as part of the ongoing IPO.

The company promised to prioritise a high payout ratio in the years after the IPO while financing its investment projects from other sources.

It is important to highlight, however, that the yields calculated by Ziarul Financiar are based on the prices proposed by Hidroelectrica resulting from its own valuation, while the actual price of the shares may change significantly once floated at Bucharest Exchange.

iulian@romania-insider.com

(Photo source: Facebook/Hidroelectrica)