Liquidating Fondul Proprietatea would benefit capital market

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Bucharest Stock Exchange (BVB) CEO Ludwik Sobolweski considers that the liquidation of Fondul Proprietatea and the floatation of its packages of shares through the listing of each issuer would be beneficial for the improvement of the local market’s indicators.

If instead of Fondul Proprietatea (FP), we were to float the companies included in its portfolio and the packages currently on the market were to be free-float, this would be better for the Romanian capital market. This is the view of Ludwik Sobolewski, the market operator’s CEO.

“If Fondul Proprietatea were to be liquidated, it would be better for market liquidity and depth,” he stated at the Retail Investors Forum organized by BVB in Bucharest. “I will go even further than that: the sooner the better,” Sobolewski emphasised.

Fondul Proprietatea was floated on the local market in 2011 and has been the most liquid issuer until last year.

FP’s secondary listing in London, on 29 April 2015, lowered its trading in Bucharest. Unlike previous years, now companies such as Banca Transilvania (TLV), Romgaz Medias (SNG) and Electrica (EL) are overtaking Fondul in many trading sessions, and on many days Fondul barely registers RON 1 M in trading.