THREE TIMES OVERSUBSCRIPTION Small investors have done their job in the Electrica IPO

Small investors have rushed in to the IPO of "Electrica" in the first five days when they were entitled to receive a 5% discount off the final price. Overall, the small investor tier (7% of the IPO) saw subscriptions of 40.9 million shares, as it was oversubscribed 3.3 times.

However, this tier of the IPO is divided in two - one segment on which orders for up to 1,000 shares per investor are booked, which get a guaranteed allocation, but not the discount, and another dedicated to subscribers who get a discount.

The government guarantees up to 10 million shares, on a first-come, first-served basis.

By Friday, 7.76 million guaranteed shares had been sold, with investors rushing first and foremost to the 2.4 million shares offered at a discount, as they placed for them orders worth a total of 33.20 million lei (1381%), according to data provided by "Estinvest".

The distribution of discounted shares will be done pro-rated, subject to demand and the number of shares subscribed through the orders for the guaranteed package of up to 1,000 shares.

On the tranche for big investors (8% of the IPO), orders for 5.19 million shares had been placed by Friday, covering up to 36.64% of the offer.

Individual investors bought the shares at a price of 13.5 lei.

The final price will be set once the IPO closes, when the volume of subscriptions on the tranche of institutional investors is known, where 150.61 million shares, (85% of the shares being put up for sale) are available. Institutional shares can buy shares in Electrica at prices that range between 11-13.5 lei/unit.

The last subscription day is Wednesday, June 25th, and the listing may take place in the beginning of July.

The number of shares allocated to retail investors can be supplemented by up to 5%, from 15% to 20% of the shares available in the IPO, subject to demand.

The government wants to sell to private investors 51% of the shares of Electrica through the IPO, through which the company is expected to raise at least 435 million Euros.