Romanian hydropower group Hidroelectrica, the most valuable state-owned company, expects to launch the initial public offering (IPO) for listing its shares on the Bucharest Stock Exchange no sooner than the end of this year, according to the company's CEO, Bogdan Badea, quoted by Bursa.

Hidroelectrica's listing is going to be a milestone for the Romanian capital market and should not be deferred later than next spring, Badea said at a press conference marking ten years since the listing of local investment fund Fondul Proprietatea.

Hidroelectrica is currently the biggest holding in Fondul Proprietatea's portfolio as the fund owns a 20% stake in the company valued at over EUR 1 bln (50% of its net asset value).

Hidroelectrica's performances may look impressive, but the company needs more capital to turn into a regional player, Badea commented.

Currently, the planned IPO is blocked by legislation passed by the Social Democrat Government in 2020 that forbids the sale of state assets.

However, the company has prepared for listing its shares during the past years, and the process should go smoothly once barriers are lifted.

The center-right Government announced plans to abrogate the bill, originally aimed at preventing the sale of state assets under uncertain global economic circumstances. However, amid the worldwide rally fueled by QE and massive general liquidity, the logic lost its sense. 

(Photo: Hidroelectrica Facebook Page)

andrei@romania-insider.com