10 Years Since Electrica’s Listing on the Bucharest and London Stock Exchanges

On July 4, 2014, Electrica made history by launching the largest initial public offering (IPO) in the history of the Bucharest Stock Exchange (BVB), attracting almost RON 2 billion (EUR 444 million). This was the only privatization with a majority stake carried out through the stock exchange and the only listing in the Romanian state portfolio with the issuance of new shares, consolidating the company’s position as a leader in the energy sector. Even after 10 years, Electrica’s IPO remains the largest primary offering in the history of the Romanian capital market.

“It is a great honour to celebrate 10 years since our listing on the Bucharest Stock Exchange and London Stock Exchange, a moment that in our opinion highlights our ongoing commitment to transparency, excellence and sustainability. This decade of achievements would not have been possible without the trust and support of our shareholders, strategic partners, customers and, above all, the team that works passionately to turn our vision into reality. We look to the future with confidence and enthusiasm, continuing to invest in innovative technologies and to improve our services, in order to remain a pillar and a model of excellence in the Romanian energy sector,” said Alexandru Chirita, CEO of Electrica.

In the 10 years since its listing, Electrica has seen significant growth, doubling the number of shareholders from 7,000 in 2014 to more than 13,700 in 2024. Also, Pillar II and Pillar III pension funds together hold more than 24% of total shares, making them the second largest shareholder after the Romanian state. To date, Electrica’s share transactions have totalled about RON 6.2 billion (of which about RON 4.62 billion post-IPO transactions), representing 4.7% of the liquidity recorded in the last 10 years on the Main Market of the Bucharest Stock Exchange. These achievements have attracted a diversified portfolio of international investors, making an essential contribution to Romania’s promotion to Emerging Market status. Electrica shares are part of the BVB’s main indexes and are included in the MSCI Frontier Markets and FTSE Russell Emerging Markets indexes.

“The listing of Electrica was a landmark moment for the Bucharest Stock Exchange and for the local capital market, both in terms of size of the public offering at that time and company’s evolution on the stock exchange over the last decade. By listing the main Romanian energy companies, the authorities have laid the foundations for the development of the local energy sector on the basis of essential capital market principles: trust, transparency, application of corporate governance principles. The local capital market has undergone a major transformation over the past 10 years, and Electrica has been part of this transformation,” said Adrian Tanase, CEO of BVB.

Electrica has achieved remarkable financial performance, bringing its current market value to over RON 5.2 billion, reflecting an impressive growth of almost 146% in the last two years – from the historic low of RON 6.10 reached in September 2022, to the historic high of RON 15 reached in June 2024.

From a financial perspective, in the 10 years since its listing, Electrica has invested more than RON 6 billion in modernizing and expanding its energy infrastructure, thus ensuring high quality and reliable services for its customers. The company allocated RON 752 million for the acquisition of minority stakes in distribution and supply subsidiaries and more than RON 100 million in renewable energy projects, thus fulfilling its IPO obligations. In addition, Electrica has attracted grants worth a quarter of a billion euros through the Modernization Fund, the largest volume of funding in the sector.

The cumulative dividends during this period exceed RON 2 billion, providing a stable and attractive yield for investors, even in the context of market fluctuations, except for the last 2 years. Shareholders who invested in the 2014 IPO benefited from an aggregate gain of more than 90%, of which 53.8% from dividends and 36.4% from share appreciation, giving a compound annual growth rate of 6.64%, when average annual inflation over the period was 3.96%.

Another defining aspect of the 10 years is the commitment to corporate governance and social responsibility. Immediately after the listing, the company implemented a robust corporate governance action plan, adopting a code of ethics and various policies to ensure transparency and integrity. Electrica also pioneered the publication of the Sustainability Report since 2016, before it became a legal requirement.

In collaboration with the European Bank for Reconstruction and Development (EBRD), Electrica has implemented measures to optimize activities in all its segments, thus strengthening corporate governance practices and responsibility towards the environment and the community. The amounts allocated to social responsibility programs have grown exponentially since the listing, reflecting the company’s commitment to the environment and the community.

Electrica is currently the largest energy employer in Romania, with almost 8,000 employees. This position reflects the company’s continuous efforts to transform and optimize activities in all its segments. In addition to professional development, Electrica places a strong emphasis on employee well-being, offering competitive benefits packages and work-life balance initiatives. By creating an inclusive and collaborative working environment, Electrica encourages innovation and creativity, enabling employees to actively engage in projects that contribute to the long-term sustainability and success of the company.

 

Electrica launches ‘Children’s energy, the light of the future!’

On the occasion of the 10th anniversary of its listing on the Bucharest Stock Exchange and London Stock Exchange, Electrica launched the project ‘Children’s energy, the light of the future!’. The Foundation will focus on implementing projects aimed at improving the lives of people from vulnerable social groups and contributing to the well-being of local communities, with a focus on areas such as education, health, environmental protection and combating energy poverty.

“The launch of the Electrica Foundation and its first project, ‘Children’s energy, the light of the future!’, marks an important moment for our community involvement. Through this project, we want to make a real difference in the lives of the most vulnerable among us, provide sustainable solutions to energy problems and support children’s education, so that we can contribute to creating better prospects for all of us,” said Alexandru Chirita.

“The Electrica Foundation aims to become a driving force for change, a place where courageous ideas come to life and where the energy of good deeds inspires and motivates others to act in a similar way. The project ‘Children’s energy, the light of the future!’ is just the beginning of a long-term commitment to support education and development in disadvantaged communities. We want to support children in these communities to learn and develop in a better environment, and we believe that every solar lamp we offer is not only a source of light, but also a window to a more promising future,” added Marilena Nedelcu, President of Electrica Foundation.

The foundation’s first project, entitled ‘Children’s energy, the light of the future!’, aims to support children in communities affected by extreme energy poverty. According to data from the Romanian Energy Poverty Observatory, two out of ten households in Romania consume energy well below the national average, and more than 4,700 children live in homes without access to electricity. The project aims to distribute over 5,000 solar lamps to children in affected households, giving them access to a safe and sustainable source of light.

The solar lamps, symbolically named ‘Fireflies’, will allow children to continue their studies and other activities with their families even after dark, helping to reduce school dropout rates and improve the quality of life in vulnerable communities. These lamps are designed to be easy to use, durable and efficient, offering a sustainable alternative to traditional lighting sources. By distributing solar lamps, the Electrica Foundation aims to:

• Provide children in disadvantaged and isolated communities with a safe and accessible source of light, helping to improve conditions for school activities and beyond
• Reduce the risks associated with the use of unsafe and polluting lighting sources such as gas lamps or candles
• Promote the use of renewable energy and environmental education, emphasizing the importance of sustainable solutions to fight energy poverty
• Raise awareness of energy poverty challenges and mobilize resources to support similar initiatives in the future.

The project ‘Children’s energy, the light of the future!’ will be implemented in several phases in communities across the country, starting with Satu Mare, Alba, Bistrita-Nasaud and Suceava. The Electrica Foundation encourages the involvement of the community and companies in supporting the project. Those interested can join as volunteers or donate directly to the foundation’s account. Further information is available on www.fundatiaelectrica.ro and www.luminaviitorului.ro.

 

About Electrica

Electrica Group is a key player in the electricity distribution, supply and production market in Romania and one of the most important players in the energy services sector.

The Electrica Group provides services to approximately 3.9 million users and has a national coverage – organized in three areas for electricity distribution: North Transylvania, South Transylvania, North Muntenia, and throughout the whole country for the supply of electricity and for maintenance and energy services.

As of July 2014, Electrica has been a company with private majority capital, listed on the Bucharest and London Stock Exchanges. Electrica is the only Romanian listed company in the electricity distribution and supply sector.