Power and gas utility group Premier Energy announced that the Romanian Financial Supervisory Authority (ASF) approved its planned Bucharest Stock Exchange (BVB) IPO that thus kicks off on May 8. The IPO will last for a week and aims to bring over €135mn to the company and its owner.

Premier Energy’s owner EMMA Alpha Holding (EMMA Holding) values the company’s 100mn shares (before the IPO) at €405mn, or €4.05 (around RON20) per share – 5.12 times the €79mn net profit reported last year, according to the IPO prospectus. It is ready to cede a stake of 29-32.5% to retail and institutional investors, under the IPO by new share issuance and sale of existing shares.

The indicative price range for the IPO has been set at between RON19.0 and RON21.5 per share.

Under the IPO, EMMA Holding seeks to issue between 25mn (Base Deal) and 30mn (Upsize Scenario) new shares and thus derive at least €100mn for Premier Energy to finance its further expansion: the development and takeover of renewable assets in Romania and Moldova. As part of the same deal, EMMA Holding also wants to sell 6.25mn-7.5mn of its shares to derive at least €25mn in cash. 

Under the Base Deal, 31.25mn shares, out of which 25mn new shares, will be available to investors, while under the Upsize Scenario, the number of shares on sale may rise to 37.5mn (30mn new shares).

At the same time, EMMA Holding is ready to make available to the IPO managers 4.69mn of its shares to allow for stabilisation measures (Over-Allotment Shares).

EMMA Holding will retain a share of 71.2% (Upsize Scenario) or 75% (Base Deal) after the IPO, shares that would drop to 67.5% and 71.2% respectively if all the Over-Allotment Shares are sold.

Retail and institutional investors are offered portions of 20% and 80% respectively.

Retail investors will be able to subscribe at the maximum price (RON21.5 per share). They will pay the price set in the tranche for institutional investors, but those who subscribe during the first three days of the IPO (May 10 including) will be given a 5% discount.