Romanian electricity producer Hidroelectrica aims to raise more than 1 billion euros in what is poised to be one of Europe’s largest initial public offerings so far in 2023, a source close to the matter said.
Company operates more than 180 hydropower plants in Romania. It announced plans on Tuesday to list up to 20% of its shares on the Bucharest Stock Exchange by July.
Investment banks will start taking stock orders from investors after the local securities watchdog approves the prospectus for the share sale.
The offering will include existing shares held by Fondul Proprietatea, an investment fund managed by U.S. asset manager Franklin Templeton.
FP valued its 20% holding in Hidroelectrica at 2.2 billion euros as of April, implying an equity value for the company of more than 10 billion euros.
The fund last year said it might not be able to sell its entire stake in a domestic IPO after abandoning plans for a dual listing of shares in London and Bucharest.
Hidroelectrica is Romania’s biggest energy producer, accounting for a third of its electricity. The IPO is part of a deal struck with the European Union to secure post-pandemic recovery funds.