Adrian Tănase, BVB: "The dual listing of Electrica proved that the local market wins"

The dual listing of the Electrica company demonstrated that the local market benefits because, over time, liquidity has moved almost entirely to the Bucharest Stock Exchange (BVB), said yesterday Adrian Tanase, the General Director of our capital market operator, with the occasion of the event that marked ten years since the listing of the supplier and distributor of electricity on our stock exchange and on the London Stock Exchange.

The director of BVB said: "The benefits of the listing are obvious, especially for a company that needs capital, a lot of investments. All other companies that are in this situation must realize that the listing is almost mandatory, and Electrica has demonstrated that the listing helps the company's success".

Adrian Tănase added: "Electrica is a «dividend player». The company's performance in this decade on the stock market was 90% (n.r. total return), of which 50% represents the distribution of dividends. During these ten years almost the entire company was traded; more than 400 million shares were traded. It was a dual listing, which, however, proved that the local market wins, because all the liquidity moved almost exclusively to the Bucharest Stock Exchange, which proves that dual listings have a limited contribution in the valuation of a company".

According to the Director of the BVB, Electrica contributed to strengthening the representativeness of our country in the indices of the rating agencies. "As you know, we were included in the FTSE Russell indices, we were promoted to secondary emerging market status in 2019 and, recently, Electrica joined the Romanian companies that are represented in these indices", said Adrian Tănase.

The BVB director added: "Of course we look with great interest to the future, to the way you will use the capital market and the way you will return the money from the capital market to your shareholders".

Electrica was listed in the summer of 2014 following the largest initial public offering (IPO) in the history of the Bucharest Stock Exchange, attracting almost two billion lei (444 million euros). This was the only privatization with a majority stake carried out through the stock exchange and the only listing from the Romanian State portfolio with the issuance of new shares, according to a company release.

Currently, the State, through the Ministry of Energy, owns 48.8% of the electricity supplier and distributor, while the pension funds from Pillar II and Pillar III together have more than 24% of the company's total shares.