CNVM decided to drop its fee to 0.1 percent from 0.5 percent. “In this way, CNVM continues the policy established in the past three years, to reduce the level of commissions and fees charged for operations on regulated markets,” said company officials.
Companies would be willing to pay up to €500,000 for listing in the case of an IPO worth €100 million, at a 0.5 percent commission.
“Even after this drop, the percentage applied by CNVM is high compared to countries in the European Union, where companies pay surveillance institutions up to €50,000 for listing,” said Raluca Visinescu, Corporate Finance Manager of ING Bank Romania. CNVM was concerned about the possibility of having to compete with similar institutions from the EU.
“This is a positive sign for the market, but CNVM should lower all other commissions as well,” Septimiu Stoica, President of the Bucharest Stock Exchange (BVB), told Business Standard. The action is important but commissions are not a decisive factor for increasing IPOs. “For that to happen, company managers and owners must understand the advantages of capital markets, of stock exchange financing,” said Iulian Panait , President of the KTD Invest consultancy company. Razvan Pasol, President of Intercapital Invest, believes the “mentality of company managers is an obstacle.”
