Transgaz IPO attracts foreign investors

“The subscription degree took us by surprise. We were expecting the offer to be successful, but this is beyond our expectations. Many foreigners were attracted by the Transgaz offering, as it is the first of its kind in Central and Eastern Europe," according to a statement to Business Standard by the company’s General Manager, Ioan Rusu.

The IPO brought in €1.8 billion, instead of the expected €65 million, for 10 percent of the gas transportation company’s share capital. Eight significant investors, including Financial Investment Company (SIF) Oltenia, acquired a total of 700,000 shares, worth €38 mln.

State-owned Bulgarian company Bulgargaz Holding purchased 9,000 shares for some €543,000, according to Bulgarian newspaper Dnevnik’s website. Several investment funds, banks and brokerage companies also subscribed for Transgaz shares.

The Transgaz IPO was launched on November 26. Large investors over-subscribed the IPO 38.95 times, paying a total €1.5 billion for 60 percent of the shares in the offering. Smaller investors, who were allowed to pay a maximum €0.14 mln for their shares, over-subscribed the IPO 12.4 times.