On July 4, 2014, Electrica made history by launching the largest initial public offering (IPO) in the history of the Bucharest Stock Exchange (BVB), raising almost 2 billion lei (444 million euros). This was the only privatization with a majority stake carried out through the stock exchange and the only listing from the Romanian state portfolio with the issue of new shares, strengthening the company’s position as a leader in the energy sector. Even after 10 years, Electrica’s IPO remains the largest initial public offering in the history of the Romanian capital market. To mark the moment, Alexandru Chiriță, CEO of Electrica, together with the team and representatives of the authorities and the capital market opened the trading session today.
“It is a great honor to celebrate 10 years of listing on the Bucharest Stock Exchange and the London Stock Exchange, a moment that we believe highlights our constant commitment to transparency, excellence and sustainability. This decade of achievements would not have been possible without the trust and support of our shareholders, strategic partners, customers and, above all, the team that works passionately to make our vision a reality. We look to the future with confidence and enthusiasm, continuing to invest in innovative technologies and improve our services, in order to remain a basic pillar and a model of excellence in the energy sector in Romania,” said Alexandru Chiriță, Electrica’s CEO.
In the 10 years since the listing, Electrica has seen significant growth, doubling the number of shareholders from 7,000 in 2014 to over 13,700 in 2024. Also, the pension funds in Pillar II and Pillar III together hold over 24% of the total shares , being the second largest shareholder after the Romanian state. Until now, the transactions of Electrica shares have totaled approximately 6.2 billion lei (of which approximately 4.62 billion lei post-IPO transactions), thus representing 4.7% of the liquidity recorded in the last 10 years on the Main Market of the Stock Exchange Bucharest values. These achievements have attracted a diversified portfolio of international investors, contributing essentially to the promotion of Romania to the status of an Emerging Market. Electrica shares are part of the BSE’s main indices and are included in the MSCI Frontier Markets and FTSE Russell Emerging Markets indices.
“The listing of Electrica represented a landmark moment for the Bucharest Stock Exchange and for the local capital market, both by the size of the public offering on that date and by the evolution of the company on the stock exchange over the last decade. By listing the main Romanian energy companies, the authorities laid the foundations for the development of the local energy sector based on essential capital market principles: trust, transparency, the application of corporate governance principles. The local capital market has undergone a major transformation in the last 10 years, and Electrica was part of this transformation,” said Adrian Tănase, general manager of BVB.
Electrica achieved notable financial performance, which brought the current market value to over 5.2 billion lei, reflecting an impressive growth of almost 146% in the last two years – from the all-time low of 6.10 lei reached in September 2022 , at the historical maximum of 15 lei reached in June 2024.
From a financial perspective, in the 10 years since the listing, Electrica has invested over 6 billion lei in the modernization and expansion of the energy infrastructure, thus ensuring high quality and reliable services for its customers. The company allocated 752 million lei for the acquisition of minority stakes in the distribution and supply subsidiaries and over 100 million lei in renewable energy projects, thus complying with its obligations assumed through the IPO. In addition, Electrica attracted non-refundable financing worth a quarter of a billion euros through the Modernization Fund, the largest volume of financing in the field.
Cumulative dividends from this period exceed 2 billion lei, providing a stable and attractive return for investors, even in the context of market fluctuations, except for the last 2 years. Shareholders who invested in the 2014 IPO enjoyed an aggregate return of over 90%, with 53.8% from dividends and 36.4% from stock appreciation, for a compound growth rate of 6.64 % annually, given that the average annual inflation during this period was 3.96%.
Another defining aspect in the 10 years is the commitment to corporate governance and social responsibility. Immediately after listing, the company implemented a robust corporate governance action plan, adopting a code of ethics and various policies aimed at ensuring transparency and integrity. Electrica also pioneered the publication of the Sustainability Report starting in 2016, before it became a legal requirement.
In collaboration with the European Bank for Reconstruction and Development (EBRD), Electrica implemented measures to optimize activities in all its segments, thus strengthening corporate governance practices and responsibility towards the environment and community. Amounts allocated to social responsibility programs have grown exponentially since listing, reflecting the company’s commitment to the environment and community.
Currently, Electrica is the largest energy employer in Romania, with almost 8,000 employees. This position reflects the company’s ongoing efforts to transform and optimize activities in all its segments. In addition to professional development, Electrica places great emphasis on the well-being of its employees, offering competitive benefits packages and work-life balance initiatives. By creating an inclusive and collaborative work environment, Electrica encourages innovation and creativity, allowing employees to actively engage in projects that contribute to the sustainability and long-term success of the company.