In its way to achieve the goal of being upgraded to emerging-market status, Bucharest Stock Exchange (BVB) relies on the fact that the Romanian government will continue state-asset sales this year.
“All our efforts are aimed at getting on the watch list if not this year, then next year. In the meantime, we want to have a deeper market for equities, which will be fueled by the privatization program,” Ludwik Sobolewski, CEO BVB, said in an interview for bloomberg.com.
After raising USD 800 million in two IPOs last year as part of their agreement with the International Monetary Fund and the European Union, Romanian authorities have stopped further asset sales as it grapples with insolvency claims and restructuring exercises.
An upgrade of Romania’s stock market could draw more investors because some fund managers buy their shares to mirror MSCI’s indexes. MSCI’s gauges are tracked by investors managing about USD 9.5 trillion globally.
According to Sobolewski, the opening of a new trading system at the end of this month that would let companies with a capitalization above EUR 250,000 trade shares and raise money from investors, will encourage listings from a wider variety of companies. Also, Port of Constanta, which runs the country’s Black Sea trading hub, and the management company for Bucharest airports, may also sell shares this year.
“We expect another big transaction on the primary market,” Sobolewski added.