Hidroelectrica celebrates one year since its listing on the Bucharest Stock Exchange

Hidroelectrica, leader in the production of electricity and the main provider of technological services needed in the National Energy System, celebrates today one year since its historic listing in 2023 on the Bucharest Stock Exchange (BVB).

On July 12, 2023, H20 shares started trading following the successful conclusion of the largest initial public offering (IPO) ever made at the BVB in an operation that attracted a total of 9.28 billion RON (1.87 billion EUR or 2.04 billion USD) for 89.7 million shares representing 19.94% of the total number of shares. The Hidroelectrica offer, carried out at the BVB between June 23 and July 4, 2023, thus became the largest offer in Europe and the fourth largest in the world, taking into account the IPOs made in 2023.

Currently, Hidroelectrica is the largest Romanian company in terms of capitalization which, at the end of yesterday, was 57.89 billion LEI, up 24% compared to the company’s capitalization since the IPO. The shares of the Hidroelectrica company were included in the BET, BET-TR, BET-TRN, BET-XT, BET-XT-TR, BET-XT-TRN, BET-BK, BET-NG and BET Plus indices from the first day of trading of the company on the BVB Regulated Market. Within the BET index, the main index of the Romanian capital market, the company has the 3rd largest share. The significant size of the Hidroelectrica IPO attracted its inclusion in the FTSE Russell indices for Emerging Markets and in the MSCI indices, immediately after the listing of the company on the BVB.

“A year ago, with the start of the IPO preceding the listing of Hidroelectrica, a real enthusiasm was sparked around the company and the idea of ​​holding the Hidroelectrica share in the portfolio, a much-awaited company on the stock market. At the time, many investors took their first steps on the stock market by opening a trading account due to the presence of Hidroelectrica, a strategic company for our country, on the BVB. Investors’ appetite for the company is high even today, as it has been throughout this year since the listing, where we see that it was the most traded share on the BVB. Congratulations to the Hidroelectrica team for everything you have achieved so far, not only as a listed company, but also as a leader in the field in which you are active and we will follow you closely as we have done so far” , said Radu Hanga, BVB President.

“We feel at home at the Bucharest Stock Exchange (BVB). Symbolically, ringing the bell at the Stock Exchange means progress, it means investments, it is something unique. A lot of people from this country contributed to this historic moment: ASF, BVB, the Romanian Government, the ministry, the Hidroelectrica team. It was a job well done. At that time, no one, no consultant, no matter how much experience he had, could have predicted such success. This proves that Romania has a fantastic potential and we must have the courage to think and make big plans. I raised the bar very high. To make an analogy, as partners of the Romanian Olympic and Sports Committee, we tell you that the strongest athlete carries the flag in front of the team: this is what Hidroelectrica does. All those present here represent Romania, and all of us, all the institutions, all our colleagues represent Team Romania and I think it’s a wonderful thing. The numbers say it, the potential still exists, we must continue this success story in the same team.

As a listed company, we are in contact with investors almost daily, maintaining an always open relationship. We must continue this successful project and I would encourage other companies to follow our example.

The positive energy brought trust and recognition from investors and the state institutions involved in the listing process, BVB, ASF, the Romanian Government paved our way through all the measures taken.

Thank you for supporting our team, Team Romania. Let’s go further and be on the podium next year and in the following years” – said Karoly Borbely – Hidroelectrica CEO

“If we were to compare the listing process with an iceberg, I would say that the listing represented only the tip of the iceberg, the base being constituted by the years of preparation in which Hidroelectrica consolidated, grew, diversified its portfolio, learned what it had to do so as to generate the absolutely necessary confidence that investors must have in a listed company. We were very happy that we managed to do this. For me, as CEO at that time, it was a privilege to be a cog in the gear that took care of the listing and I want to thank the unseen multitude of colleagues who day by day, through professionalism, selflessness, and involvement, make this company what it is you see it is today. We still have a lot of things to do.

An extraordinarily important pillar that will continue to generate added value for the company is to increase our production capacities, to diversify, to develop new technologies that allow the realization of those synergies between the various sources of renewable energy and to make Hidroelectrica the main actor of the energy transition and, obviously, a champion not only at the national level in the energy sector, but also at the international level.

Happy many profitable years to both Hidroelectrica and the Bucharest Stock Exchange ” – said Bogdan Badea , Hidroelectrica CIO.

“Today we are celebrating one year since the reference transaction registered by Hidroelectrica following the listing on the Bucharest Stock Exchange. This transaction, in addition to setting new records, generated a unique moment in the Romanian capital market. It changed investors’ perception of BVB’s absorption capacity of a transaction of such scope, smoothing the way for the promotion of the Romanian capital market to the status of an emerging market, an essential stage in the development of the capital market and the Romanian economy. Thus, we can say that two performers in their fields, Hidroelectrica and BVB, have created a historic win-win. Hidroelectrica’s listing represents the beginning of a journey that will surely contribute to the company’s success in implementing development strategies, which will always be centered on investments in the unrepeatable portfolio that the company has . A natural step for Hidroelectrica, a huge step for BVB. “ said Dragos Rosu, Strategy Manager at Hidroelectrica

“The Hidroelectrica listing was, without a doubt, the stock market event of 2023 and a reference point for the capital market in Romania. The IPO, the largest in Europe and the fourth worldwide, in 2023, put Romania on the map of high-quality institutional investors and sparked an interest and energy never seen before among local retail investors. This interest is still found among investors, Hidroelectrica being the most traded stock on the stock exchange and, at the same time, the largest Romanian company listed on the BVB. We expect, of course, that Hidroelectrica will play an important role in the promotion potential of the Romanian capital market to emerging market status by MSCI.” , said Adrian Tanase, BVB General Manager

During the first year of its presence on the BVB, the Hidroelectrica share was the most traded share on the stock exchange. Investors made over 213,000 transactions with over 43 million Hidroelectrica shares, worth over 5 billion lei. At the same time, taking into account the dividends distributed by the company so far, the investment made in H2O shares has brought a total yield of 37% since the listing until now, while the price yield of the company’s shares is 24%.

The majority shareholder of Hidroelectrica is the Romanian state, through the Ministry of Energy. Hidroelectrica has a generation capacity, 100% green, of 6,300 MW of energy from hydro sources and 108 MW from wind sources, being the largest producer of electricity in the country, with a market share of 30%. At the same time, Hidroelectrica holds the first place among the providers of SEN system services, with a market share of approximately 70% of the secondary regulation service and 60% of the rapid tertiary reverse service. In addition, as a result of the implementation of the revenue diversification strategy, Hidroelectrica has become one of the most important suppliers of electricity to retail customers, occupying the first position in terms of market share among the suppliers active in the competitive market.