Bucharest Stock Exchange (BVB) has become one of the most dynamic markets in Central and Eastern Europe over the past four years, where initial public offers (IPOs) have been successfully concluded.
According to the PwC’s IPO Watch Europe reports, BVB has registered IPOs of almost EUR 1.1 billion over the last four years.
Three private companies and two state companies have been listed on BVB since 2013 to the present.
This year, it was registered the record for the largest IPO launched by a private company on the Romanian capital market: DIGI Communications (DIGI), a major provider of telecommunication services in Romania and Hungary, sold a stake of 25.6 percent totaling EUR 207 million.
AAGES (AAG), a company that designs and manufactures induction heating systems for a wide range of applications, entered BVB trading on June 19, 2017, following an offering whereby the shareholders sold 15 percent of the company for EUR 1.2 million.
At the end of last year, another private company, private healthcare operator MedLife (M), sold a stake of 44 percent for EUR 51 million.
”The Romanian capital market has developed in recent years due to the reforms and the constant process of market modernization. In less than a year, two large IPOs of private companies, the largest in the history of the Romanian capital market, have been achieved, which gives us hope that we will see new companies’ listings on the Bucharest Stock Exchange,” said Lucian Anghel, BVB president.
In the last four years, Romania has surpassed capital markets more developed or classified at a higher level than the frontier markets such as Austria, Greece or Hungary in terms of IPOs value carried out on those stocks, according to PwC quarterly reports.
According to Lucian Anghel, at regional level, Romania’s capital market made a historic leap and became one of the two most powerful markets for IPOs, surpassing even some emerging and developed markets. And this has happened in a country where the Gross Domestic Product Index per capita places Romania at the end of the ranking in the European Union.