Hidroelectrica S.A. Announces Intention to List on Bucharest Stock Exchange

S.P.E.E.H. Hidroelectrica S.A. (“Hidroelectrica” or the “Company”), Romania’s leading electricity producer with a 100% renewable portfolio and one of the largest hydropower companies in Europe, today announces the intention of Fondul Proprietatea S.A. (“Fondul”), an alternative investment fund managed by Franklin Templeton International Services S.À R.L. (“Franklin Templeton”) (the “Selling Shareholder”), to proceed with an initial public offering (the “IPO” or the “Offering”) of the Company’s existing ordinary shares (the “Shares”). The Company plans to apply for admission (the “Admission”) of its Shares to trading on the regulated market of the Bucharest Stock Exchange (the “BSE”). The Offer will take place after the approval of the prospectus (the “Prospectus”) by the Romanian Financial Supervisory Authority (“FSA”).

Fondul has received shareholder approval to dispose of its entire holding of up to 19.94% of Hidroelectrica’s total issued share capital in the IPO. The number of Shares to be initially offered will be determined at a later date. The Company will not raise new capital in connection
with the Offering and will not receive any proceeds.
The IPO will consist of a public offering to retail and institutional investors in Romania and an offering to eligible international institutional investors. The Shares will be offered and traded, following the Admission, in Romanian leu (“RON”).

The Admission is expected to take place in July 2023. Once admitted to trading, the Company’s shares would be included in the BET index of the BSE immediately following the Admission. The Company and Fondul will be subject to a lock–up agreement for a period of 180 days, and
the majority shareholder will be subject to a lock–up agreement for a period of 12 months, from the Admission date.

Bogdan Badea, Chief Executive Officer of Hidroelectrica, commented: “Hidroelectrica has a strong track record of achieving meaningful growth and delivering shareholder returns, and we are proud to be the leading electricity producer in Romania with a 100% renewable energy portfolio. We are well positioned to continue our growth path, with a clear strategy focused on operational efficiencies, diversification and expansion of our business and delivering shareholder value, all underpinned by a supportive long–term sector and macroeconomic environment.
The proposed IPO is an exciting and logical next step in our journey, as the listing of Hidroelectrica’s shares on the Bucharest Stock Exchange will help us diversify our shareholder base and raise our international profile.”