Lucian Anghel, BSE: Romgaz shares subscribed at 16 percent in the first day on BSE

In the first public offering for Romgaz shares on Bucharest Stock Exchange, the company traded over 16 percent from its retail tranche and most likely will lead to a final oversubscription said Lucian Anghel, President of BSE and CEO of BCR Pensions.

2013-10-23 12:47:22

Retail investors submitted orders to buy 1.4 million shares and, according to Anghel, this is a unique opportunity for the public because the offer represents a 5 percent discount per share, compared with the offer for institutional investors. The minimum required amount to invest for private investors has to cover the prices for 100 shares, representing some RON 3.200. As the largest public offering, Anghel also stated that Romgaz is the largest gas producer in CEE region and as state-owned company, it posts the largest profit, over 1 billion lei. The initial public offering for Romgaz initiated on Tuesday and the state plans to sell 15 percent of its stake. The listing is scheduled to end at October 31. The Ministry of Economy offers some 57.8 million shares with prices totaling between USD 426.6 million and USD 568.8 million, including 13 percent stabilization fund. Following the offer, Ministry of Economy will own at least 70 percent of the company's shares while Fondul Proprietatea maintains the 15 percent stake. The rest of 15 percent is submitted to free market trading.

Goldman Sachs International and Erste Group Bank act has been designated joint global coordinators for the offer while Romanian Commercial Bank and Raiffeisen Capital & Investment were appointed lead managers for the local market.