International investment banks Rothschild and Lazard have expressed interest in providing consultancy service to Romanian state-owned electricity producer Hidroelectrica in the process of preparing its initial public offering (IPO) and listing its shares on the stock exchange.
Hidroelectrica is the most valuable state-owned company in Romania, worth around 3.4 billion euros. The Romanian state owns 80 % of the company, with the remaining 20 % held by investment fund Fondul Proprietatea. The company produces some 30 % of the country’s electricity.
In August, Hidroelectrica’s CEO Bogdan Badea said that the company will list its shares on the Bucharest Stock Exchange through an initial public offering (IPO) in September 2020. Double listing is also in consideration, but so far it is not certain on which stock exchanges, adding that London is primarily option, besides Bucharest. This was recently confirmed by newly appointed Minister of Finance Florin Citu.
Rothschild has had several mandates in Romania in recent years, one of which was advising the shareholders of local restaurant operator Sphera Group (Pizza Hut, Taco Bell, KFC) in the process of selling shares and listing on the stock market. Rothschild has an office in Bucharest, and one of the partners, Arielle De Rothschild, was a member of the Board of Directors of electricity distributor and supplier Electrica, after the group carried out its 440 million euros IPO in 2014.
Lazard has a stronger position on the US market than in Europe, but the new CEO – Peter Orszag, former economic adviser to US president Barack Obama said last month that the company intends to win more deals in Europe.
