Brokers say bad timing for STK Emergent IPO

Brokers say the IPO comes at the worst possible time, as the appetite of investors is dropping continuously. “It is very difficult to sell a company at this time, but one cannot stop an offer which has been prepared for several months. Ten percent of the offer will definitely be subscribed, the minimum necessary for a successful closure, but I do not know if it will be oversubscribed,” said brokerage company SSIF Broker’s Deputy General Manager, Adrian Ceuca.

Some 177,877 shares, or 25 percent of the fund’s share capital, are to be allocated during the IPO, which is to end on March 10. The price is RON 281 (€77.2) per share.

Another IPO to begin this month is that of water meter producer Contor Grup. As of February 29, the company will make a 20 percent share of its capital available on BVB, at a RON 0.38 (€0.1) per share tag price.
This will be the third public offering on BVB this year, following Casa de Bucovina and STK Emergent. Contor Grup's IPO was initially scheduled for last month, but was postponed due to unfavorable market conditions.