Franklin Templeton, in its capacity of alternative investment fund manager and sole director of Fondul Proprietatea (the Fund/ FP), is pleased to announce the admission to listing and trading of Hidroelectrica’s shares on the regulated market of the Bucharest Stock Exchange (BVB) today, thus successfully completing the much-anticipated IPO of Romania’s leading energy producer on the local stock exchange. The initial public offering by Fondul of 78,007,110 of Hidroelectrica’s existing ordinary shares (excluding any over-allotment option) was priced at RON 104 per share, implying a market capitalisation of RON 46.8 billion (€9.4 billion) at admission.
This record-breaking transaction is a result of Franklin Templeton’s enduring commitment to developing the country’s local capital market, promoting corporate governance and increasing transparency. The firm’s efforts have spanned over 13 years since Franklin Templeton first opened its office in Bucharest, Romania.
“We are delighted to have contributed to the successful closing of Hidroelectrica’s IPO, the largest in Romania and one of the biggest in Central and Eastern Europe. Franklin Templeton, as Fund Manager of Fondul Proprietatea, is proud to have played a major role in the development of the Romanian capital market over the past 13 years through close involvement with the companies in the Fondul portfolio. The listing of Hidroelectrica is proof of what can be achieved through sustained focus on the importance of corporate governance and transparency, which translates into long-term performance and investor confidence. I would like to congratulate the Franklin Templeton and Hidroelectrica teams, advisors, banks and other consultants for their hard work and dedication, which made this transaction a reality, cementing their place in the history of the Romanian capital market,” said Jenny Johnson, President and CEO of Franklin Templeton.
With this listing, Hidroelectrica becomes the largest Romanian company on the Bucharest Stock Exchange. The IPO is the 3rd largest ever on a Central and Eastern European Exchange, it is the largest in Europe since September 2022 and the third largest globally in 2023 year to date by deal value, a major achievement for the local capital market.
“The excellent reception this IPO has received, both domestically in Romania and internationally, represents a new stage in the journey for Hidroelectrica. This reflects the success of Templeton’s management of Fondul since 2010, and the great partnerships we have created with public and private institutions in Bucharest and globally, to build greater transparency, and to raise corporate governance standards for our portfolio companies to deliver long-term value and sustainability for all stakeholders,” also said Manraj Sekhon, Chief Investment Officer for Templeton Global Investments.
With significant oversubscription, Hidroelectrica’s share offering has attracted exceptional investor interest and confidence, demonstrating the company’s attractive fundamentals and growth potential.
“The scale and resounding success of the Hidroelectrica listing is a great outcome after many years of preparation, hard work and coordination that was required to make this transaction a reality. The Franklin Templeton team in Romania has achieved something to be truly proud of and has once again played its part in making history in the Romanian capital market. I’d like to express my sincere gratitude and congratulations to all parties involved. To the team at Hidroelectrica, which today starts its journey as a listed entity, thank you for your commitment to the process, and well done on reaching this incredible milestone. Wishing you the utmost success in your stewardship of one of the crown jewels of the Romanian capital market,” added Johan Meyer, CEO Franklin Templeton Romania and Portfolio Manager of Fondul Proprietatea.
Franklin Templeton believes the listing of Hidroelectrica on the Bucharest Stock Exchange will pave the way for new investment opportunities in Romania and the further realization of shareholder value. Hidroelectrica’s successful listing is expected to boost investment in Romania and raise the profile of the country as an attractive investment destination.