Romania: Electrica listed on Morgan Stanley Capital International Index hopes for capital inflows

Published on 20. November 2014., SEE Energy News

Electrica Group, the largest distribution and supply in Romania, entered the Morgan Stanley Capital International Index (MSCI) frontier markets, followed by funds with assets of 12.4 billion dollars.

Electrica, group income of 1.1 billion eur in 2013 and a market capitalization of 926MEUR, was listed on the Bucharest Stock Exchange and the London on July 4. Electrica becomes the sixth company in the Romanian frontier markets index, after BT, Petrom, Romgaz, Transgaz BRD. Inclusion or exclusion from the index are based on the capitalization and liquidity of companies on the stock market and not based on income, business or profits.

The MSCI frontier markets is pursued by investment funds that have assets of 12.4 billion dollars, each change being closely watched by investors. The American company has not publicly announced that it will hold the weight in the index Electrica. If Electrica will hold a share of 0.5%, the company’s shares could attract additional capital flows of about 60 million dollars.

If, however, the share would be 1%, but is now BT – the highest share owned MSCI Frontier Markets Romanian company – then additional flows could climb to 120 million dollars for Electrica. Petrom shares, the most valuable listed company – with a market capitalization of 24.1 billion lei – have a share of 0.65%, followed by Romgaz with a share of 0.58%, 0.37% BRD shares and Transgaz with a share of 0.33%.