Fondul Proprietatea: NAV discount to shrink with Hidroelectrica IPO (stays BUY)
Fondul Proprietatea (FP, the Fund) has outperformed the market by 20% in the LTM, and returned close to 16%, including dividends. We believe the performance has been sustained by cash distributions, and both the expectations for Hidroelectrica’s listing and its improving valuation, due to rising power prices. We expect the discount to NAV to reduce with the monetisation of the Hidroelectrica stake, which we expect within the next six months. We value the latter at RON 12.2bn, 11% above the current market cap of the fund. We keep our BUY rating and set our new 12M price target (PT) at RON 2.42/share (from RON 2.49 previously), implying 26% upside potential.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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