Premier Energy has listed in Bucharest and raised about $150 million. It is only the second equity raise Enerdatics records in the Romanian energy market across 2023 and 2024. But not all of the $150 million went to the company, and the part that did is smaller than several single-project loans signed in Romania the same year.
Key takeaways
- Premier Energy raised $150.74 million through its initial public offering in Romania, announced on 15 May 2024, at a final offer price of $4.22 (RON 19.50) per share.
- Of the gross proceeds of Premier Energy's IPO, $104.85 million went to the company as issuer and $45.86 million to the selling shareholder.
- The European Bank for Reconstruction and Development (EBRD) bought 11 percent of the shares offered in Premier Energy's IPO, worth $16.69 million and equal to just over 3 percent of the company after listing.
- Premier Energy plans to use its IPO proceeds to acquire renewable energy assets in Romania and Moldova and to fund capital expenditure on developing renewable generation, and it has over 1,000 MW of renewable capacity under ownership, management or development in the two countries.
- Premier Energy's $150.74 million IPO is about 7 percent of the size of Hidroelectrica's $2.05 billion IPO in July 2023, the only other energy equity raise Enerdatics records in Romania across 2023 and 2024.
Who is Premier Energy?
A gas and power distributor that is building a generation business. Premier Energy Group is one of the largest energy groups in Romania. It is the country's third-largest natural gas distributor and supplier, with more than 150,000 consumption points.
In Moldova it is bigger still. It is the largest electricity distributor and supplier there, serving almost 1 million consumption points and more than 840,000 supply clients. After an acquisition, the group serves about 2.4 million electricity and gas supply clients across the two countries.
The renewable side is the growth story. Premier Energy has over 1,000 MW of renewable generation under ownership, management or development in Romania and Moldova. The IPO is designed to fund that side of the business.
How was the $150 million split?
Unevenly. An IPO can sell two kinds of shares. Primary shares are newly issued, and the money goes to the company. Secondary shares are existing shares sold by current owners, and the money goes to them. Premier Energy's offer did both.
Of the $150.74 million raised, $104.85 million, about 70 percent, went to Premier Energy as issuer. The remaining $45.86 million, about 30 percent, went to the selling shareholder. Only the first part is available for the acquisitions and capital expenditure the company has set out.
There is also an over-allotment option. Emma Alpha Holding Ltd granted the Joint Global Coordinators an option over 4,687,546 shares, exercisable in whole or in part within 30 calendar days of admission to trading. An over-allotment option lets the banks running the offer sell extra shares if demand is strong and then stabilise the price in early trading. At the $4.22 offer price, the full option would be worth about $19.8 million.
Premier Energy has also set out a dividend policy of paying 30 to 70 percent of consolidated annual net profit to shareholders. That is a promise aimed at income investors, and it sits alongside a plan to invest in new generation.
Why does the EBRD's stake matter?
Because it signals who is willing to underwrite Romanian energy growth. The EBRD took 11 percent of the shares offered, worth $16.69 million, which leaves it with just over 3 percent of the company after listing.
That is a small ticket, but the EBRD is a recurring presence in Romanian energy finance. It appears as an investor or lender on 6 of the 27 Romanian energy financings Leap records for 2023 and 2024, including loans for the Lepuresti and Ghimpati solar parks, the Urleasca wind farm and the Vifor wind project. Its participation in an IPO is one more way development finance is pulling capital into the market.
The record notes strong demand from both retail and institutional investors, in Romania and internationally. WOOD & Company Financial Services was a member of the intermediary syndicate.
How does the IPO compare with other Romanian energy financings?
It is rare, and it is small. Enerdatics records 27 energy financings in Romania across 2023 and 2024. Of those, 22 are debt, 3 are government grants and only 2 are equity raises: Premier Energy and Hidroelectrica.
Hidroelectrica's July 2023 listing raised $2.05 billion and was the biggest IPO on the Bucharest Stock Exchange. Premier Energy's offer is about 7 percent of that size.
Enerdatics' data shows that the $104.85 million Premier Energy received as issuer is smaller than three single-project debt packages signed in Romania in 2024. Rezolv Energy and Low Carbon raised about $314 million for the Vifor wind project, Nala Renewables about $234 million for the Frumusita wind farm, and Nofar Energy about $122 million for the Lepuresti and Ghimpati solar parks. Premier Energy's equity is meant to fund a pipeline, while those loans each fund a single build.
What does the deal signal for Romania's renewables market?
That the market is still financed mostly by banks, with equity arriving through a few large listings. Twenty-two of 27 Romanian energy financings in 2023 and 2024 were debt. Equity has come through the public market rather than through private funds announcing raises.
It also shows a pattern among Romanian energy groups: established players are moving into renewable generation. OMV Petrom bought half of a company holding about 1 GW of wind and solar projects in January 2024. Premier Energy, a gas and power supplier with 2.4 million clients, is now raising public equity to buy and build its own.
Demand for renewable power in Romania is visible on the buy side too, with corporate buyers signing long contracts such as nextE's 25-year solar PPA. A supplier that owns generation can sell that power to its own customers. That integrated model appears to be what Premier Energy's IPO is designed to fund.
Frequently asked questions
How much did Premier Energy raise in its IPO? Premier Energy raised $150.74 million through its initial public offering in Romania, announced on 15 May 2024, at $4.22 (RON 19.50) per share.
How much of the IPO money went to Premier Energy? $104.85 million went to the company as issuer and $45.86 million to the selling shareholder.
What will Premier Energy do with the IPO proceeds? It plans to acquire renewable energy assets in Romania and Moldova and fund capital expenditure on developing renewable generation, building on more than 1,000 MW under ownership, management or development.
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