Erste: BVB could become most attractive market in the region in 2009

The most important company to be listed is Fondul Proprietatea, a fund established to compensate persons whose property was unjustly seized by the communist regime. The Economy and Finance Ministry is likely to list at least 10 percent of Fondul Proprietatea stock. “Given the real value of the fund amounts to some €6 billion, the listing will have a significant impact on the degree of investment on the Romanian capital market,” according to the report released by Erste on Tuesday.

The current market value of free-float shares on BVB is some €7 billion.

Besides Fondul Proprietatea, initial public offerings for several utility companies are expected in 2009, such as Hidroelectrica and Nuclearelectrica electricity producers, Romgaz gas producer, Tarom airline, and Bucharest’s international Henri Coanda Airport. Furthermore, the Romtelecom telecom operator, controlled by Greek OTE group, in which the Romanian state still owns 46 percent of shares, is set to be listed next year.

Erste analysts estimate that, if the seven scheduled listings take place, average liquidity on BVB will reach a daily €45 million by 2010. (NewsIn)