Premier Energy (PE), one of the biggest energy groups in Romania, successfully closed its initial public offering (IPO) on the Bucharest Stock Exchange (BVB) on May 15, 2024. 

The company and IPO consortium set a final price of RON 19.5 per share, towards the lower end of the pricing interval (RON 19-21.5). This price implies a valuation of RON 2.4 billion (almost EUR 490 mln) for the company.

Retail investors in Romania were entitled to a discount of 5% on the offer price for applications submitted in the first three business days of the IPO. The final discounted offer price for shares subscribed for under these conditions is RON 18.53 per share.

The IPO, which generated strong demand from retail and institutional investors in Romania and from international institutional investors, represents a total offering of 35,937,859 shares, amounting to 28.75% of Premier Energy's total issued share capital. Following the IPO, EMMA Capital continues to hold 71.25% of the shares in Premier Energy Group.

The IPO consisted of a public offering to retail and institutional investors in Romania and an offering to eligible international institutional investors, with a final split between the offering tranches of 20% of the offer shares allotted to retail investors and the remaining 80% of the offer shares allotted to institutional investors, the company said. 

The gross proceeds of the IPO are RON 695.1 million, consisting of RON 483.5 million to the issuer and RON 211.5 million to the selling shareholder (assuming the sale of the Over Allotment Shares).

The settlement will take place on May 20, 2024. The admission and start of trading on the Bucharest Stock Exchange under the symbol "PE" are expected to take place on or around May 27.

Immediately following the admission, the company's shares will be included in the BET index of the BVB.

"Premier Energy's attractive investment story and considerable growth potential has been reflected in the high demand we have seen from both retail and institutional investors, in Romania and internationally. We are delighted with the success of the IPO and to be listing on the Bucharest Stock Exchange and we warmly welcome all our new shareholders," said Jose Garza, Chief Executive Officer of Premier Energy Group.

The company said it will use the proceeds of the IPO to acquire renewable energy assets in Romania and Moldova, as well as to capital expenditure on the development of renewable energy production assets. It intends to pay out 30%-70% of its consolidated annual net profit in dividends.

Premier Energy Group has over 1,000 MW of renewable electricity generation under ownership, management, or in development in Romania and Moldova, along with one of the fastest-growing renewable electricity supply businesses in both countries.

The company is the third largest natural gas distributor and supplier in Romania, with over 150,000 consumption points. It is also the biggest electricity distributor and the largest supplier in Moldova, with almost 1 million consumption points and more than 840,000 supply clients serving roughly 70% of the Moldovan population.

Following the acquisition of the CEZ Vanzare supply business in Romania, Premier Energy Group serves a combined total of approximately 2.4 million electricity and natural gas supply clients in Romania and Moldova (an increase of roughly 1.4 million), the vast majority of which are households and small businesses.

In the year ended December 31, 2023, the company generated consolidated revenues of EUR 912 million, a net profit of EUR 78.8 million, and adjusted EBITDA of EUR 127.7 million.

editor@romania-insider.com

(Photo source: Premier Energy)