Banca Comerciala Romana (BCR), one of the intermediaries of the Romgaz offer, has requested that BVB (the Bucharest Stock Exchange) extend the Romgaz offer subscription processing schedule until 8.00 p.m. on October 25, 29 and 30, and 11.30 p.m. on October 31, the last day, since a large volume of subscription orders is expected, Ziarul Financiar reports. The schedule for client subscriptions remains the same, namely from 9.00 a.m. to 5.00 p.m. and to 1.00 p.m. on the last day, October 31.
Until yesterday at 11.40 a.m., small investors had subscribed almost 50 percent of the retail shares. More precisely, investors submitted purchase orders for 4.34 million shares worth RON 138.8 million (EUR 31.5 million).
According to a TradeVille report, the initial public offer could be seen as both a long-term investment and a good speculative opportunity by small investors, especially where subscriptions in the first five days are concerned, as they offer a 5 percent discount. “We expect a dividend rate of 12.3 percent for the minimum offer price. The listing is being carried out under advantageous conditions for share stocks, given that the United States’ raise of the debt ceiling allows investors to focus on reviving developed economies, and local macroeconomic stability means Romanian shares are likely to increase. The offer is one the longest awaited for opportunities for BVB in recent years, as Romgaz was the most profitable state company in 2012,” the report shows further. According to independent consultant DeGolyer&MacNaughton, on June 30, 2013 Romgaz owned 62.1 billion mc in net reserves, which would ensure its production for the next 11 years, and 14 billion mc in probable reserves. Investments in Romgaz shares are a direct bet on the deregulation of the Romanian gas market, a process designed to bring internally produced gas prices in line with imported gas prices, in accordance with International Monetary Fund requirements. Deregulation implies raising gas prices by 160 percent by 2019, according to schedules divided by way of industrial and household consumers and energy producers, respectively, which would in turn easily compensate for the downward trend in gas production and consumption of recent years. Moreover, industrial consumers would be exposed to a much more rapid price increase calendar, the TradeVille document reveals.