Shares of Romanian gas company Romgaz rise 15% in first trading day

By bne IntelliNews November 13, 2013

The shares of Romanian natural gas company Romgaz were floated on the local stock exchange on November 12 – when the closing price jumped 15% above the price in the IPO carried out earlier in October.

Small individual investors have purchased the shares with a 3-5% discount in the IPO therefore they made a larger gain – but due to oversubscription they were anyway given only 7.5% of the shares initially subscribed.

Calculated at the closing price, the company’s capitalisation was RON 13.3bn [EUR 3bn].

Romania’s government has sold under an IPO 15% of Romgaz for RON 1.7bn [EUR 383mn], news agency Mediafax announced. The state is now left with 70% in the company and the remaining 15% belong to the Property Fund.

The share price in the IPO was RON 30 – close to the upper end of the RON 24-32 indicative target asked by the government. A 36% portion of the 15% IPO [5.4% of the company’s shares] was sold under a GDR mechanism in London at a price of USD 9.25 per GDR. Out of the total shares and GDRs, 40% was sold to residents and 60% to non-residents.

The company expects EUR 1bn turnover and a EUR 320mn net profit this year.

Related Articles

Romania’s Transgaz reportedly renews bid for Greece’s DESFA

Romanian gas transport company Transgaz has teamed up with Spain’s Regasificadora del Noroeste in an attempt to take over its Greek peer DESFA, where the Greek state has put a 66% stake up for ... more

Poland’s PKN Orlen launches offer to delist Czechia’s Unipetrol

Poland’s state-controlled oil and gas company PKN Orlen has launched an offer to take over Czech refiner Unipetrol, the Polish company said on December 13. PKN Orlen said it will go through with ... more

Turkmenistan to take Iran to arbitration over $1.8bn gas supply claims

Turkmenistan announced plans on December 5 to take a dispute with Iran over $1.8bn Tehran supposedly owes for Turkmen natural gas deliveries to international arbitration. Tehran says the figure is ... more