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    Press release: ASF approved the prospectus for the sale of shares issued by Societatea de Producere a Energiei Electrice în Hidrocentrale „Hidroelectrica” S.A. Bucharest

Press release: ASF approved the prospectus for the sale of shares issued by Societatea de Producere a Energiei Electrice în Hidrocentrale „Hidroelectrica” S.A. Bucharest


Bucharest, 23 June 2023 - The Board of the Financial Supervisory Authority (ASF) approved, in its meeting held on 22 June 2023, the IPO prospectus for up to 78,007,110 shares representing 17.34% of the total number of shares issued by Hidroelectrica - the issuing company.

With a turnover of RON 9.12 billion and a profit of RON 4 billion in 2022, Hidrolectrica is one of the largest energy companies in Southeast Europe and is the largest electricity producer in the region. The company is an electricity supplier to hundreds of thousands of domestic and industrial customers.

"Hidroelectrica's listing on the Bucharest Stock Exchange is the largest in the history of our capital market and even in the region and will become a benchmark for the Romanian stock exchange. It will give a new dimension to the Romanian capital market and will attract both small and large investors. The teams of experts within the Financial Supervisory Authority have been working continuously to create the necessary legislative framework so that the IPO can take place under the best conditions and be carried out exclusively on the Bucharest Stock Exchange", said Mr. Nicu Marcu, President of the Financial Supervisory Authority.

By listing Hidroelectrica, the Bucharest Stock Exchange strengthens its role at the regional level, while being of significant importance both for the capital market and for investors in Romania. The listing of Hidroelectrica's shares also comes in the context of the adoption of the Capital Market Strategy, which supports and encourages increased liquidity and attractiveness of the Romanian capital market.

"One of the major objectives of ASF is the sustainable development of the capital market, as the national economy needs to strengthen this sector. As I have said on other occasions, the support of the Stock Exchange requires the orientation of investments towards solid assets in the national economy. The Romanian Stock Exchange must become a significant landmark of the Romanian economy, an important source of financing and a trading platform for the shares of the most important and attractive Romanian companies", says Mr. Nicu Marcu.

The steps taken to develop the local capital market were a joint effort of the Romanian Government, the Financial Supervisory Authority and the local stock exchange and were aimed at increasing liquidity, diversifying issuers and building a broader base of investors present at the BSE, in line with the Local Capital Market Strategy.

"The Financial Supervisory Authority aims to identify all the instruments and activities that ensure the prerequisites for increasing the attractiveness of the Romanian capital market, with due respect for the principles of transparency and investor protection in the capital market, contributing to the improvement of the regulatory framework in order to simplify market access for both issuers and investors. The objectives of local market development are subsumed in the national strategic objective of our country's foreign policy of accession to the Organisation for Economic Co-operation and Development", stresses the President of the Authority, Mr. Nicu Marcu.

In this context, Mr. Nicu Marcu believes that the exclusive listing in Bucharest is a unique event for the Romanian capital market, which thus demonstrates its maturity.

After the assessment of the local capital market status by FTSE Russell, which has already included Romania in the emerging markets index from September 2020, the listing of Hidroelectrica is an important step towards meeting the criteria set by MSCI (Morgan Stanley Capital International) to promote the local capital market to emerging market status.

The offer will run for 8 business days from 23 June to 4 July 2023 and is aimed at both retail and institutional investors.

The shares are offered at the Offer Price Range of 94 lei - 112 lei per share.

After the IPO, the issuing company will complete the steps already initiated and will apply to the Bucharest Stock Exchange for final approval to admit the issued shares to trading.


About the Financial Supervisory Authority
The Financial Supervisory Authority is the national authority, established in 2013 by GEO 93/2012 approved by Law 113/2013, for the regulation and supervision of the insurance, private pension and capital markets. The ASF contributes to strengthening the integrated framework for the functioning of the three sectors, which together account for more than 10 million participants. More information can be found at www.asfromania.ro.