* Prices shares at 11 lei vs 11-13.5 lei range
* Raise 1.95 bln lei ($605.8 mln) for investments
* Romanian retail investors get about 21 pct of shares
* EBRD buys 8.6 percent stake
(Recasts with share price, adds EBRD, sale manager comments)
By Luiza Ilie
BUCHAREST, June 27 Romanian utility Electrica
has set a bottom-of-the range price for shares in its stock
market flotation, being privatised under a 4 billion euros ($5.5
billion) aid deal led by the International Monetary Fund.
Electrica, which supplies power to 3.5 million customers in
the European Union state and has a regulated, guaranteed profit
margin, set the final price of its shares at 11 lei apiece,
having previously set a range of between 11 and 13.5 lei.
Electrica's flotation, involving the sale of 51 percent of
the company's equity to raise 1.95 billion lei ($605.8
million)to help fund its investment plans, was one of at least
three selloffs the government had committed to carry out this
Flotations of minority stakes in coal and hydro power
producers Oltenia and Hidroelectrica have been delayed most
likely until next year.
"Pricing ... is the result of our desire to create the
premises for good aftermarket trading, not just to sweep
everything off the table," Mirela Ionescu, investment banking
director at Raiffeisen Bank Romania and the sale manager told
"Obviously, investors want as much upside as possible. It is
a trade-off between investors' desire to raise their yield and
the company's desire to not sell at a discount," Ionescu said.
The bank also set a price of $13.66 for Electrica's global
depository receipts (GDR), which will trade in London.
Romanian retail investors were given about 21 percent of the
shares on offer, with the rest going to large institutional
investors. The European Bank for Reconstruction and Development
(EBRD), which had already invested about 6.7 billion euros
across 360 projects in Romania, bought an 8.6 percent stake for
more than 320 million lei.
"Our participation demonstrates the EBRD's commitment to
supporting the government's plans for increased privatisation of
the energy sector," Nandita Parshad, the EBRD's Power and Energy
director said in a statement.
Parshad said the bank would work with Electrica to align its
corporate governance with international standards. "This will
provide additional comfort and confidence to potential future
The share sale ran from June 16 to June 25 on the Bucharest
Stock Exchange and in London. Citigroup, Raiffeisen and
Societe Generale managed the listing.
($1 = 3.2287 Romanian lei)
($1 = 0.7331 Euros)
(Additional reporting by Radu Marinas; Editing by David Holmes)