Hidroelectrica (H2O), leader in the production of electricity and the main provider of technological services needed in the National Energy System, celebrates one year since its historic listing in 2023 on the Bucharest Stock Exchange (BVB). On July 12, 2023, H20 shares began trading following the successful completion of the largest ever initial public offering (IPO) on the BSE in an operation that raised 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, held 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, increasing by 24% compared to the company’s capitalization since the IPO. Hidroelectrica shares 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 capital market in Romania, the company has the 3rd largest weight. The significant size of Hidroelectrica’s IPO attracted its inclusion in the FTSE Russell Emerging Markets and MSCI indices, immediately after the company’s listing on the BSE.
“One 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 long-awaited company on the stock exchange. 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, at the BVB. Investor appetite for the company remains high today as it has indeed been throughout this year since listing, where we see it has been 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 operate, 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, the ringing of the bell at the Stock Exchange means progress, it means investment, 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 experienced, 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. We have 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: that’s what Hidroelectrica does. All of us 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 is still there, we have to 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 listing company. We are very glad to have achieved 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 crowd of colleagues who day by day, through professionalism, selflessness, involvement make this company what it is see it’s today. We still have a lot 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 nationally in the energy sector but also internationally.
Happy profitable years to both Hidroelectrica and the Bucharest Stock Exchange,” added Bogdan Badea, Hidroelectrica CIO.
“Today we celebrate one year since the landmark 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 such a large-scale transaction, paving the way for the promotion of the Romanian capital market to emerging market status, 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 certainly contribute to the company’s success in implementing its development strategies, which will always be centered on investing in the unrepeatable portfolio that the company owns. A natural step for Hidroelectrica, a huge step for BVB”, said Dragos Roșu, Strategy Manager at Hidroelectrica.
“The listing of Hidroelectrica 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 institutional investors of caliber and aroused 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 capital market in Romania to the emerging market status from MSCI”, said Adrian Tănase, Director General of BVB.
During the first year of 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 return of 37% since the listing to date, while the price return 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 electricity producer in the country, with a 30% market share. 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 by market share among suppliers operating in the competitive market.