Romania Seeks $425 Million From Romgaz in Its Biggest IPOAndra Timu and Irina Savu
Romania plans to raise at least 1.38 billion lei ($425 million) through the sale of a minority stake in Romgaz SA, its largest natural-gas producer, in the country’s biggest initial public offering.
The government will sell 57.81 million shares, or a 15 percent stake, in Romgaz at a range of 24 lei to 32 lei per share, Energy Minister Constantin Nita told reporters in Bucharest today. It will sell shares directly to investors from Oct. 21 to Oct. 31 on the Bucharest bourse and through global depositary receipts in London, Gabriel Dumitrascu, head of the Energy Department’s asset-sale program, said at the briefing.
“It’s the state’s biggest offering, so I expect investor interest to be elevated,” Nita said. “I expect the offer to be oversubscribed.”
The eastern European country must complete the initial public offering by the end of November to meet a pledge to the International Monetary Fund to overhaul state companies under a 2 billion-euro ($2.7 billion) accord. The nation sold a minority stake in nuclear power generator Nuclearelectrica SA last month as part of the deal.
The government plans to sell 85 percent of the Romgaz shares to institutional investors and the remainder to individuals, according to Nita. The Romanian stock-market regulator is expected to approve the sale prospectus today, Dumitrascu said.
Goldman Sachs Group Inc., Erste Group Bank AG, Banca Comerciala Romana SA and Raiffeisen Capital & Investment SA are managing the sale.