Five IPOs to bring euro 12 bln on BVB

The five main initial public offerings (IPO), which investors on the Bucharest Stock Exchange (BVB) are looking forward to, 
could raise the stock exchange’s capitalization to over €40 billion, from its current €27.5 bln level.

According to a report by Intercapital Invest brokerage company, the most important issuer awaited by BVB is Banca Comerciala Romana (BCR), whose market value could amount to €7.62 bln, moving it to second place among largest companies listed on the stock exchange, after Petrom. The market value of Transgaz, Casa de Economii si Consemnatiuni (CEC), Romtelecom, and S.N. Radiocomunicatii could reach €4.38 bln. The lowest market value on the stock exchange estimated by Intercapital Invest analysts belongs to Societatea Nationala de Radiocomunicatii.

“Considering the number of large companies that are state-owned and register turnover which could place them among top 20 companies listed on BVB, the future of the Romanian capital market is an interesting one. New listigs followed by successes on the stock exchange of state-owned companies would promote the equities market,” said Andreea Ciobanu (photo), Analyst of Intercapital Invest. She added that the first steps to develop the Romanian capital market, in terms of listing of new issuers on the stock exchange, should be made by the Romanian state. 

More than 35 companies have indicated their interest in the capital market. At present, there are 60 companies listed on the BVB. “Such companies would attract the attention of other private companies in terms of financing and developing their business using the instruments of the capital market,” she explained.