Nuclearelectrica has announced that its initial public offering would be postponed until late July, at the very least. This was after a dispute between Fondul Proprietatea, a minority stakeholder in the Romanian nuclear energy company and union members.
Trade union leaders objected at the decision to list a stake in the company, as 90% of its shares are state-owned. The remaining 10% shares are owned by Fondul Proprietatea, which appointed an asset management company as its administrator. This asset management company was Franklin Templeton, which, according to trade union leaders, had no right to vote for an IPO at a shareholders' meeting.
The initial public offering was part of a privatization program that was agreed with the International Monetary Fund. The price for the IPO was pegged at RON11.2 to 15 (or US$3.25 to 4.35) per share, according to the Romanian government. On the other hand, Fondul Proprietatea's shares are valued at about Eur147 million.
If pursued, the Nuclearelectrica IPO would be the first IPO of a company that was state-owned since 2007.
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