Romania’s biggest IPO: a privatisation breakthrough? | beyondbrics:
"It was the biggest initial public offering in Romania’s history, and the latest of several big IPOs in eastern Europe. But will Friday’s part-privatisation of natural-gas utility Romgaz reinvigorate Romania’s stalled liberalisation programme?
The sale of 15 per cent of Romgaz was five times oversubscribed and raised 1.7bn lei ($517m), above the 1.38bn lei minimum, Bloomberg reported on November 1. The government sold 57.8m shares at 30 lei each through the Bucharest Stock Exchange (BVB), as well as global depository notes on the London Stock Exchange. Both will start trading on November 12. Some 60 per cent of shares went to foreign investors.
“The IPO shows the energy sector in Romania is seen by investors as an interesting market, with good potential to develop,” Romanian economic journalist Cristian Pantazi told beyondbrics. “For the BVB, it shows that there is money in the local market, but investors are afraid of risk and willing to go only to safe places. The success is moderate, given the fact that a few months ago some government officials said they were expecting to raise €600m ($800m).”"
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