August 22 (SeeNews) - Romanian investment fund Fondul Proprietatea [BSE:FP] will launch an initial public offering (IPO) of up to 19.94% interest in majority state-owned hydro power producer Hidroelectrica by the end of the first half of 2023, the government announced on Monday.
The successful completion of the listing of a substantial package of Hidroelectrica shares on the Bucharest Stock Exchange at the end of the first semester of next year will allow Romania to fulfil the specific objective established in its National Resilience and Recovery Plan, the government said in a press release.
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"The listing will contribute to the development of the local capital market, which has a fundamental role in the development of Romanian companies and their access to financing that can boost their investments. Consolidating investments will strengthen the economy," prime minister Nicolae Ciuca said following a meeting with Fondul Proprietatea representatives.
Ciuca and Fondul Proprietatea also discussed the potential listing of local salt producer Salrom. Fondul announced at end-July that it aims to list Salrom in the first half of 2023. The economy ministry owns 51% of Salrom and 49% is controlled by the investment fund.
At the end of March, Fondul Proprietatea said it plans to launch a initial public offering (IPO) of 15% interest in Hidroelectrica by the end of the year, seeking to raise 10.4 billion lei ($2.3 billion/ 2.1 billion euro).
Hidroelectrica is 80.06% owned by the Romanian state, while Fondul Proprietatea owns 19.94%. The company has in its portfolio 209 hydro power plants with a total installed capacity of 6,482 MW. The company also operates a 108 MW wind farm in the eastern county of Constanta.
Fondul Proprietatea's shares traded 0.31% lower at 1.9480 lei as at 1423 CET on Monday on the Bucharest Stock Exchange.
(1 euro=4.8853 lei)
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