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Anghel (BVB): Romgaz IPO retail portion subscribed more than 16 pct on first day


The retail portion of Romgaz company's initial public offering was 16% subscribed on the first day, and most likely there will be an oversubscription in the end, president of the Bucharest Stock Exchange (BVB) and BCR Pensions CEO Lucian Anghel told AGERPRES on Oct. 22.

Retail investors placed orders for the purchase of 1.4 million shares.

'This is a unique opportunity for the population because there is a discount of 5% from the price for institutional investors,' Anghel said.

The minimum required investment must cover the cost of 100 shares, that is RON 3,200.

Lucian Anghel says that this is a historic event since this is the state's biggest offering on the capital market.

'Romgaz is the largest gas producer in Central and Eastern Europe, the state-owned company with the highest profit, of over one billion lei. It's a company with a solid growth base in the future and I am confident that it will capture the attention of both the population, and local and international investors. It places us on the international map and this cannot be but beneficial for the market. Since they acquire Romgaz shares, they will also consider buying other stock, if they are not already present in the market,' Lucian Anghel says.

The initial public offering whereby the state wants to sell a 15% stake in Romgaz kicked off on Tuesday and is scheduled to end on October 31, 2013.

The indicative sale price was set between 24 and 32 lei per share, the equivalent of a price range between 7.38 and 9.84 US dollars for a Global Depositary Receipt (GDR), with one GDR standing for one share.

The IPO includes shares and Global Depositary Receipts for the Romanian public and shares and GDRs for foreign institutional investors.

After the offering the Ministry of Economy will hold at least 70% of the company, and Proprietatea Fund will maintain its existing 15% stake; freely floated shares represent the rest.

Trading in GDRs on the London Stock Exchange under the ticker symbol 'SNGR' and stock trading on the Bucharest Stock Exchange under the ticker symbol 'SNC' are scheduled to begin on November 12.

Goldman Sachs International and Erste Group Bank act as joint global coordinators for the offer. Banca Comerciala Romana and SSIF Raiffeisen Capital & Investment SA were appointed lead managers for the local market.