Transgaz IPO subscribed four times one day before the closing

The 408.33 percent level of subscription could actually be higher, as major investors wait to the last moment to subscribe to shares. “We have not yet subscribed to Transgaz shares. We are waiting for the last day, to see how large oversubscription is and make necessary calculations to buy a good number of shares,” according to Petre Pavel Szel, President of SAI Muntenia Invest, which administers the SIF Muntenia financial investment company.

“At present, the Transgaz public offer has surpassed all IPOs ever, and with highest subscription, one day prior to the end of the offer. However, the subscription level is rising from one day to the next. Tomorrow it will be even higher,” said the President of financial investment advisory company, KTD Invest.

The highest order introduced into the system is worth €38.3 mln, and represents 0.7 million shares (the full share available to major investors). One day before the end of the IPO, Transgaz has 100 major subscribers and 5,500 minor subscribers. The total number of investors who subscribed to the initial public offer of the first company listed on the Bucharest Stock Exchange (BVB), Transelectrica, was 4,861, and the level of oversubscription for the offer was 6.46 times. Raiffeisen Bank representatives were expecting a record number of 10,000 investors.

The enthusiasm with which investors responded to the Transgaz offer in the past two days has also been felt on the stock exchange, where all indexes enjoyed significant increases, especially financial investment companies (SIF). Most brokers explain this rise by the fact that funds for the oversubscribed offer will return to BVB, largely to the most liquid companies listed, namely the SIFs.