Romania can become an energy hub, so it is important for us to be listed on the Bucharest Stock Exchange (BVB) and to have a saying at the international level, said Petr Stohr, CFO of Premier Energy Group, during a press conference on Wednesday.
Premier Energy PLC’s initial public offering (IPO) began on Wednesday, May 8, and is expected to close on May 15, 2024, after the Financial Supervisory Authority (ASF) approved the prospectus for the IPO and the admission to trading of the group’s shares on the BVB regulated market.
“We believe that Romania can become a kind of international hub, so for us it is important to be on the BVB and to have a replica at an international level. It is very important to be available for the international market as well. (…) Our offer is addressed to both types of investors. 20% of the offer will be allocated to retail investors. The offer period starts today (Wednesday) and will end on May 15. Retail investors have the first 3 days at their disposal, during which time they want subscribe, they will receive a 5% discount. The offer price and the exact number of shares will be determined after the book building process. We will announce the result sometime around the 16th, after which the settlement will occur around the 20th. May, and the admission and start of trading will probably start around the 27th, and the symbol under which we will trade will be PE,” said Petr Stohr, quoted by Agerpres.
Regarding Premier Energy’s interest in acquisitions, namely distribution assets, Petr Stohr emphasized that they are very interesting for the company because they provide stability to the business.
“I think they are very interesting for us because they provide stability to the business, they give us access to loyal customers on the supply side. Yes, we will be interested when such distribution assets, on the gas or electricity side, will appeared on the market,” added Petr Stohr.
He also said that the legislative environment in Romania is stable and is no different from other states in Europe.
For his part, Jose Garza, CEO of Premier Energy Group, stated that the company is one of the fastest growing energy companies in Southeast Europe in recent years.
“We hope that this is the beginning of a new era for Premier Energy following the approval of the prospectus by the ASF yesterday (Tuesday, n.r.). Premier Energy is one of the fastest growing energy companies in South East Europe in recent years. We are the largest renewable energy company in Romania, with over 900 MW. (…) The numbers speak for themselves. In the last 10 years, our business has grown from a company with revenues of 2 million of euros to what it is today, namely a business with approximately 1.3 billion euros in revenue, and EBITDA (profit before interest, taxes, depreciation and amortization, n.r.), at the end of 2023 was approximately 128 million euros Our goal for the future is to become one of the regional leaders in the Balkan area. We will, of course, continue to invest in energy efficiency in Romania and, above all, we will continue to serve our customers,” said Jose Garza.
The initial public offering will consist of a public offer addressed to retail and institutional investors from Romania, as well as an offer addressed to eligible international institutional investors, the company representatives claim.
The indicative range of the Offer Price was set between 19 lei and 21.50 lei per share. The offer includes up to 35.94 million shares.
The admission of the Shares to trading and the start of trading on the BVB is expected to take place on or around May 27, 2024, the company stated in a statement.
The Company will use the funds obtained within the Offer to acquire renewable energy assets in Romania and Moldova, as well as to cover the capital expenditures made with the development of renewable energy production assets.
The company intends to distribute 30% – 70% of its annual consolidated net profit as dividends.
Premier Energy Group is one of the fastest growing privately-owned vertically integrated energy infrastructure companies in South East Europe and one of the largest renewable energy players in the region. The Group has over 1,000 MW of renewable electricity generation capacity under ownership, management or development in Romania and Moldova, together with one of the fastest growing renewable electricity supply businesses in both countries.
In Romania, the Group is the third largest distributor and supplier of natural gas with over 150,000 consumption points. It is also the largest distributor and supplier of electricity in Moldova, with almost one million consumption points and over 840,000 customers, serving approximately 70% of the Moldovan population.
Following the acquisition of CEZ Vânzare in Romania, Premier Energy Group serves a total of approximately 2.4 million electricity and natural gas customers in Romania and Moldova (an increase of approximately 1.4 million), the majority of whom are household customers and small businesses.
Premier Energy Group was founded in 2012, entered the natural gas market in Romania in 2013, and the electricity market in the Republic of Moldova in 2019. The company is fully owned by EMMA Capital.
In the year ended December 31, 2023, the Group generated consolidated revenues of 912 million euros, net profit of 78.8 million euros and adjusted EBITDA of 127.7 million euros.