Premier Energy Listed on the Bucharest Stock Exchange

Premier Energy is being listed on the Bucharest Stock Exchange following the largest IPO made by an entrepreneurial company in the past five years.

• The electricity producer, balancer, distributor and supplier and natural gas supplier and distributor, Premier Energy conducted an initial public offering between 8 and 15 May, which attracted RON 695 million (almost EUR 140 million).
• It is the largest IPO made at the Bucharest Stock Exchange by an entrepreneurial company in the past five years.
• The offering consisted of the sale of 35.9 million shares, of which 25 million newly issued shares, 6.25 million shares sold by the sole shareholder and 4.7 million overallocated shares. The offering price was set at RON 19.5 per share.
• The retail investors were allocated a 20% rate of the offer and, during the offer, placed orders of RON 1.1 billion for a number of 51 million shares.
• As of 28 May, investors may trade company shares under the PE ticker symbol by means of authorized brokers.

“The listing on the Bucharest Stock Exchange marks a historic moment for Premier Energy and reflects investor confidence in our sustainable growth strategy. The funds raised through this IPO will allow us to accelerate our investments in renewable energy and expand our operations in Romania and the Republic of Moldova, thereby contributing to the energy transition in the region,” Jose Garza, CEO Premier Energy, said.

“The success of this IPO is a clear demonstration of the robust investor interest in the energy sector in the region. With the proceeds, we will primarily focus on continuing to grow our renewable electricity generation and balancing capacity within our vertically integrated platform. We have high confidence that this listing will bring significant benefits to the company, our shareholders, and the communities we serve,” Peter Stohr, CFO of Premier Energy, added. “We see Romania as an energy hub for the region and we want to be part of the country’s sustainable development strategy,” he also mentioned.

The company is interested in acquisitions, i.e. distribution assets, because they offer stability to the business, Premier Energy representatives believe. They also consider that the legislative environment in Romania is stable and no different from other European countries.

 

Key facts

Premier Energy Group is one of the fastest growing privately-owned vertically integrated energy infrastructure companies in Southeast Europe and one of the largest renewable energy players in the region. The group has more than 1,000 MW of renewable electricity generation capacity owned, managed or under development in Romania and Moldova, along with one of the fastest growing renewable electricity supply businesses in both countries.

In Romania, the Group is the third largest distributor and supplier of natural gas with over 150,000 consumption points. It is also the largest electricity distributor and the largest supplier in Moldova with almost one million consumption points and more than 840,000 supply clients serving approximately 70% of the Moldovan population. Following the acquisition of the CEZ Vanzare in Romania, Premier Energy Group serves a combined total of approximately 2.4 million electricity and natural gas supply customers in Romania and Moldova (an increase of approximately 1.4 million), the vast majority of which are households and small businesses.

Premier Energy Group was incorporated in 2012, entered the Romanian gas market in 2013, and entered the Moldovan energy market in 2019. The company is wholly owned by EMMA Capital, which has one of the most experienced investment teams in Central and Eastern Europe and South-Eastern Europe, with a strong growth and value creation track record and an established investment operating model.

In the year ended 31 December 2023, the group generated consolidated revenues of EUR 912 million, net profit of EUR 78.8 million and adjusted EBITDA of EUR 127.7 million.

Premier Energy Group’s business strategy is aligned with the UN Sustainable Development Goals with a focus on Europe’s Green Deal initiatives representing the EU’s proposals to make climate, energy, transport, and taxation policies appropriate for reducing net greenhouse emissions by at least 55% by 2030 with clear ESG (Environmental, Social, Governance) guidelines and policies in place.

 

Strategic priorities

Premier Energy Group’s strategy focuses primarily on creating a sustainable future by continuing to grow through renewable acquisitions, ensuring the resilience of its energy platform, taking advantage of new growth opportunities, and building on its competitive advantages and strong leadership to increase shareholder value.

 

Ambitious renewable energy plans

Premier Energy Group seeks to become one of the regional leaders in the transition to green energy, with a clear strategy to grow its renewable portfolio in line with sustainable growth and decarbonisation efforts. Premier Energy Group’s goal is to achieve an installed capacity of owned or managed renewable energy of between 1,400 MW and 1,600 MW by the end of 2026. The group expects continued investment in renewable energy assets and developments, with Romania set to deploy around 11 GW of additional wind and solar capacity to reach a total of around 16 GW by 2030.

Moldova has untapped potential from renewable sources due to favourable weather conditions and low population density. The draft National Energy and Climate Plan confirms a target of a 27% share of renewables in final energy consumption by 2030.

 

Moldovan EU candidacy and energy market integration with deregulation

Due to Moldova’s EU candidacy and planned accession, Premier Energy Group is expecting an increase in electricity demand driven by the expected higher foreign direct investment into Moldova.

The company is targeting higher regulated absolute margin as Moldova is expected to join the EU energy market and the company also considers Moldova as a potential energy hub addressing the energy import/export opportunities to and from Romania and Ukraine.

In Moldova, the company is targeting an upside from deregulation with the expected full liberalization of the market on the supply side, which is expected to lead to increased supply side margins.

 

Seeking new opportunities for growth and diversification

Premier Energy Group aims to continue to acquire and develop renewable energy generation assets or other regulated businesses, as opportunities arise, in line with or complementary to its current business sectors. As of 31 December 2023, the company had a 180 MW portfolio of wind and solar developments in Romania and 24 MW of solar developments in Moldova. Additionally, Premier Energy Group has identified tangible renewables acquisition opportunities with a combined size of approximately 350 MW.

 

EBRD becomes a minority shareholder in Premier Energy

The European Bank for Reconstruction and Development is taking an equity stake in Premier Energy to support investments in renewable energy generation capacity in Romania and Moldova.

The EBRD bought 11 per cent of shares offered at the initial public offering (IPO) of Premier Energy, a company incorporated in Cyprus, following an investment of RON 77 million (EUR 15.5 million). The shares will be listed on the Bucharest Stock Exchange. The EBRD investment is expected to represent just over three per cent of the company post-IPO.

The transaction supports both Romania’s and the EBRD’s green targets.

Proceeds from the EBRD’s participation in the IPO will be allocated towards building new renewable energy capacity primarily in Romania, and the project pipeline is estimated to result in more than 168,000 tonnes annual carbon dioxide emissions reductions.

EBRD participation was important for the success of the IPO, anchoring the issuance and attracting other investors. The EBRD will support the client in taking climate action, moving along a low carbon transition pathway, and making corporate governance improvements. Premier will also improve its standards for promoting gender equality.

“We are excited to partner with Premier Energy and support its renewables growth journey. Premier Energy’s green energy transition strategy aligns perfectly with the EBRD’s priorities in the region,”

Grzegorz Zielinski, Director, Energy Europe at the EBRD, stated.

“The EBRD is proud to expand its cooperation with Premier Energy by becoming a shareholder. In the run up to the IPO, we have successfully partnered with Premier Energy to further strengthen its ESG and climate practices and in setting ambitious targets. We look forward to supporting the company in becoming a key regional green energy player,” Tamas Nagy, Director, Co-head Private Equity at the EBRD, noted.

“We are pleased to welcome the EBRD as a shareholder in Premier Energy. This investment further strengthens our long-standing collaboration and underscores the importance of our shared commitment to renewable energy and sustainability in both Moldova and Romania. With the EBRD’s investment, we are well-positioned to expand our renewable energy capacity and drive significant reductions in carbon emissions. This partnership reflects our dedication to achieving long-term growth and making a positive environmental impact,” Jose Garza underlined.

“The participation of the EBRD in our IPO was important for its success, and we thank them for their trust. Their investment and support will enable us to accelerate our renewable energy generation projects within our vertically integrated platform which includes market-leading renewable energy forecasting, balancing and dispatching capabilities alongside serving approximately 2.4 million customers, in both Moldova and Romania, significantly contributing to a sustainable energy future and reducing the carbon footprint in the region. We believe that strong partnerships are essential for business growth, and we are proud to have the EBRD on our side, helping us achieve our strategic goals,” Petr Stohr concluded.