Romanian Minister of Energy Anton Anton said that he believes that electricity producer Hidroelectrica is still not ready for the initial public offering (IPO) of its shares on the stock exchange, because it is still weakened by the insolvency process,
Minister Anton explained that Hidroelectrica’s listing should not be rushed and it is better to wait for it to consolidate further. In September last year, Romanian Government has approved a sale of 10 % stake in electricity producer Hidroelectrica on the Bucharest Stock Exchange in the company’s IPO instead of initially proposed 15 %. Former Minister of Energy Toma Petcu stressed that the entire amount earned through the listing will remain in the company, as the Government wants it to be used for the company’s development. He said that Hidroelectrica was restructured though the lack of investments in maintenance and modernization and, although the company operates facilities with installed capacity of 6,400 MW, it cannot utilize more than 3,000 to 5,000 MW. Hidroelectrica was in insolvency for four years between 2012 and 2016.
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Tags: electricity, financial, Hidroelectrica, IPO, Romania