Transgaz SPO kicks off on the BSE

Newsroom 04/04/2013 | 08:01

The government will sell a 15 percent stake in state-owned gas transport company Transgaz through a secondary public offering (SPO) that runs between April 4 – 16 on the Bucharest Stock Exchange (BSE) and should raise around EUR 89 million for the public coffers.

This was a much expected event for the domestic capital market which has pinned its development hopes on Romania’s privatization program, which is overseen by the IMF. The SPO of Transelectrica, the grid operator, was carried out an year ago and was touted as an ice breaker for bigger listings. Officials hope the SPO of Transgaz will be a fresh restart of the privatization program.

“The Transgaz offer is the first rain after a year of drought and might be a road opener for new listings in Romgaz, Nuclearelectrica and Hidroelectrica,” said Lucian Anghel, BSE president.

The SPO follows international standards and has been split into three tranches. Institutional investors have been offered 85 percent of the total shares and the rest will go to retail investors that can buy discounted shares.

Retail investors that subscribe their offer in the first three days of the SPO will get a 5 percent discount from the final price, and those subscribing after this period will get a 3 percent discount.

The government and the intermediation syndicate agreed to keep a closed book for institutional investors, while the retail segment will run an open book.

The subscription price for institutional investors is between RON 171 – RON 230 per share, including the ends of the interval.

The underwriting syndicate comprises Raiffeisen Capital & Investment (lead manager), Wood & Co Financial Services and BT Securities.

Constantin Nita, delegate-minister for Energy, said he doesn’t take into account a failure of the offer, adding that such an outcome would be a negative signal for the company and the domestic capital market.

He added that Transgaz will appoint a professional supervision board and a private manager by Friday.

Nita said the listing of nuclear power producer Nuclearelectrica is expected next month, followed by gas producer Romgaz in September and Hidroelectrica – if it exits insolvency – and the Oltenia Energy Holding in September.

Ovidiu Posirca

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