6 C
October 21, 2020

BVB gets listed, 15 years after it became operational

June 8 was the first day when the Bucharest Stock Exchange (BVB) traded its own shares on its trading platform. The day will remain in the Stock Exchange calendar as a historic moment, similar to its turning from public institution into joint-stock company and its merger with RASDAQ in 2005. Listing the BVB shares was described as the single most important event of the capital market this year. “The listing is one of the most important moments in the 15-year history of the Stock Exchange, on par with events like the replacement of the trading system and the merger with RASDAQ and the creation of the financial group of the Exchange, which includes the Central Depositary, the Clearing House and the Clearing Fund. The idea of listing first appeared in 2007 among some Exchange Board members of that time, who enjoyed wide support from broker firms. At the end of 2008, Exchange shareholders okayed the proposal in principles, which was followed by debates and talks,” said BVB Chairman Stere Farmache. The BVB top management thus hopes to give an example and a signal of confidence to private companies that want to find financing on the capital market. But the main purpose of the listing is to make it easier for those who want to sell, and to investors who wish to bet on the capital market, by purchasing BVB stock. According to Farmache, though this is not precisely the best economic moment, listing BVB is a technical move, as it is not an Initial Public Offering (IPO) where investors buy at a price and have positive expectations regarding the evolution on the secondary market. BVB might request the removal of the regulation that limits to 5 pc the stake held by an investor in the Stock Exchange, if a strategic investor expresses the intention to hold a higher stake, the BVB Chairman added.

The first transactions of BVB shares on its own trading platform were made at a price of RON 33.9, almost 3.4 times higher than the face value of RON 10 per unit. In the first three minutes of trading, transactions neared RON 283,000. BVB opened yesterday on the rise by 0.6 pc, as the highest gains were registered by the shares of the five Financial Investment Companies, which gained an average 1.6 pc.

Related posts

Orsay inaugurates the 36th store in Romania in Veranda Mall

Romania, second-largest shadow economy in Europe, as share of GDP

Nine O' Clock

Gov’t puts on hold CAS reduction for employers

Nine O' Clock

Leave a Comment