The 15% IPO of Romanian natural gas company Romgaz, which is active in exploration, production, storage, trade and supply, might start sooner than initially planned by the government – namely on October 18-19, news agency Mediafax reported quoting unofficial sources.

Romania’s government holds 85.1% in Romgaz, with the remaining 14.9% held by the Property Fund [Fondul Proprietatea]. The government plans to sell a 15% stake. Initially, it estimated the stake's value at EUR 600mn – but more recently it adjusted the expectations to EUR 450mn.

Romgaz reported EUR 862mn revenue and a EUR 279mn net profit last year. The company is likely to benefit from the natural gas market liberalisation.

The government has still to decide on the proportion of shares and GDRs to be sold on the local bourse and respectively on the London stock exchange.

Romania’s financial supervisory authority ASF has recommended launching no more than 2/3 of the coming 15% IPO of Romgaz as GDRs in London, Bursa daily reported. The consultants suggested that the government places a combined issue of GDRs on foreign markets and shares on the local market - and the government has to decide on the shares for each of the two options.