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.

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