Robert Burlan, Raiffeisen Asset Management: "The Hidroelectrica IPO had a catalytic effect on the local capital market"

The listing of Hidroelectrica on the Bucharest Stock Exchange contributed to the expansion of the local investment offer, to the consolidation of the institutional and retail investor base, as well as to the increase in the liquidity of the local market, says Robert Burlan, CFA, Head of Investment Management of Raiffeisen Asset Management.

"At the same time, the company's capitalization and liquidity create the prerequisites for the promotion of the Romanian market to emerging market status, by the index provider MSCI. The IPO also had a catalytic effect on the local market, considering the considerable sums mobilized, some of which later returned to the market, as well as as a result of the special dividend distributed by Fondul Proprietatea from the proceeds from the sale of the stake, which supported demand for local stocks," the analyst added.

• "Solid demand from local institutional investors - a factor that supported the evolution of the share price"

From the point of view of the Raiffeisen Asset Management team, the positive dynamics of the Hidroelectrica share price after the listing was supported by a number of factors such as: the positive financial results of the company, taking into account the favorable context in the energy market, the consistent dividend proposal, the inclusion the action in local and foreign stock indices with a significant weight, as well as the solid demand from local institutional investors, considering also the green component of the company.

Related to the outlook for the evolution of the company's share price, according to the CFA analyst, even in the context of the normalization of prices in the energy market, the company maintains the prospect of delivering solid financial results in the coming period, given its significant position in the electricity generation and supply markets. "At the same time, the company has the ability to support major investment projects, which can contribute to the growth and diversification of the activity in the medium and long term", concluded Robert Burlan.