BUCHAREST (Reuters) - Romania plans to float 10 percent of hydro power producer Hidroelectrica, down from a previously planned 15 percent, the energy ministry said on Sunday.
“We change the percentage to 10 from 15 ... we are on a more accelerated path,” Energy Minister Toma Petcu was quoted by state news agency Agerpres on Sunday. “We will adopt a government decision as soon as possible.”
“We want the proceeds, that would be quite substantial from our estimates, to be used to develop the company,” Petcu said. He would not offer a timeframe for the IPO.
Earlier this month, investment fund Fondul Proprietatea said it was considering selling its 20 percent stake in Hidroelectrica, a move it said was triggered by a lack of government progress in listing it. [nL8N1LP2W9}
The IPO would be the first public offering by a Romanian state-controlled company since 2014 and would help get Romania’s stock exchange short-listed for an upgrade to emerging status from frontier.
It was originally planned for 2014 under the terms of an IMF aid deal for Bucharest. The company, which accounts for about 40 percent of local power consumption, emerged from insolvency in 2016 after years of restructuring.
Petcu said that after the IPO completes, the government “will see how Hidroelectrica evolves in the market as a listed company to look at the possibility, at a later date, of listing an additional five percent.”
Reporting by Radu Marinas; editing by Jason Neely