- Only 5% of entrepreneurs consider the opportunity of financing through the Stock Exchange, while in Western Europe the percentage is 20%, and in the US, 80%
- The appetite of new generations of investors for fresh instruments, new issuers, or private placements bring listing into the spotlight of financing alternatives
- 23 years of experience, seven listings on BVB markets, nine private placements, and access to international markets in Europe, UK, USA, Canada, Hong Kong, and Tokyo
Goldring, a Romanian brokerage company on capital market trading, won for the second time the distinction of “Intermediary of Romanian entrepreneurial companies” for the activity of listing companies on the Bucharest Stock Exchange. Goldring won the first prize in this category in 2018.
“This distinction is a recognition of our performance and motivates us to continue the activity started in the area of attracting new companies on the stock exchange, both issuers of bonds and shares. For the success of private placements and listings, we need enterprising entrepreneurs and investors, which is why we channel our efforts in carrying out educational projects, new products, and platforms, or, more briefly, friendly digitization of customer interaction. I hope to produce the most pleasant surprises with the two start-ups we are working on, starting from the ideas generated by Goldring’s current activity. These cover activities related to the capital market and will develop a better popularization of the entire stock market phenomenon “, says Virgil Zahan, General Manager, Goldring.
Statistics show that in Romania, only 5% of entrepreneurs consider the opportunity of financing through the Stock Exchange. In Europe, companies attract funding through the capital market in a proportion of 20%, the share of bank loans being 80%. On the other hand, in the USA, the weights are reversed. 80% of the companies’ financing is provided through the capital market, and only 20% through bank loans.
The enthusiasm of the capital market and the appetite of new generations of investors for new instruments, new issuers of private placements have brought listing in the spotlight of financing alternatives for the business environment. More and more entrepreneurs see listing on the stock exchange as an opportunity, increasing business visibility and understanding that compliance with corporate governance principles translates into trust for partners and investors.
“I think there will be another year, maybe more than a year, of listing at multiples very favorable to companies, compared to previous years. After this period, the stock exchange rate will probably decrease, but the surplus gained in terms of perception, popularity, and attractiveness of the capital market will not be lost. An accelerator pedal will also be the increase of the professionalism of business administration, of the opening of the managerial vision towards the benefits of diversification of financing sources, of the image and position advantages associated with the quality of the listed issuer and corporate governance -today, it will have a lot to say. The best part of this realistic-optimistic scenario is that, with these new issuers, the stock market itself will increase – as an investment alternative for the retail investor, as liquidity. A virtuous circle from which everyone has something to gain” says Virgil Zahan.
Goldring’s experience shows that the profile of Romanian companies that are interested in financing through the capital market, beyond the specifics of each, has several common characteristics: vision and determination to materialize their vision, dynamism, substantial competitive advantages in the reference sector, desire information and to absorb innovation, digitalization but also successful strategic lessons from the domestic or international market. Companies that qualify for the next phase support this attitude with a history of good financial evolution and efficient management of resources and opportunities.