Hidroelectrica (H2O), leader in the production of electricity and the main provider of technological services needed in the National Energy System, today celebrates 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 BSE 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 BSE 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 RON 57.89 billion, up 24% compared to the company’s capitalization since the IPO. At the moment, the company occupies the 3rd largest share in the main market index, the BET index. 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 BSE.
“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 company much awaited 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 BSE. 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 the 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 in his turn Karoly Borbely, Hidroelectrica CEO.
Karoly Borbely also said that the Romanian State must sell, also on the capital market, a package from the ownership of Hidroelectrica. Borbely argued that the state can take a 10-15% stake on the market next year so that it retains its controlling stake.
During the first year of its presence on the BSE, 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 income 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.
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