Digi’s, Hidroelectrica’s IPO this year to help Romania move to Emerging Market status

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The recent listing on Romanian capital market of Digi Communications NV, one of the most important telecommunication providers in Romania and Hungary, as well as the possible IPO of Hidroelectrica energy producer, one of the most profitable state-owned companies, will help Romania to upgrade to Emerging Market status, Mircea Ursache, the vicepresident of the Financial Supervisory Authority (ASF) stated on Tuesday.

“The IPO of shares issued by Digi Communication NV is an extension of the interest shown by private issuers for trading on the Romanian capital market. After the success of MedLife, which was listed in December 2016, we have, shortly after, a new private issuer that is trading on the BVB,” ASF official said.

He also stressed that the listing will also change the category of investors interested in a frontier market. According to him, both Digi and MedLife listing help Romania with the assessments that the rating agencies do about Romania.

Ursache says that the main issue of the capital market today is the liquidity and level of market transactions.

According to the specialists on the capital market, Romania is on the last mile to be upgraded to Emerging Markets, a status which is at one’s fingertips to grasp and which will make the economy benefit from massive capital inflows.

BVB kicked off 2017 with new heights in January. The value traded on the main market on equities was the highest January value in the past 6 years.

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