The listing of Romgaz (SNG), the largest natural gas producer and the main supplier in Romania, was one of the largest equity sale the Romanian state performed on the Bucharest Stock Exchange (BVB). SNG shares started trading on the Main Market of BVB on November 12, 2013, following a successful offering worth a total of RON 1.7 billion, made both on BVB and London Stock Exchange. For Romania, it was the largest sale by that time of a state-owned company using the stock exchange, and it became the second largest ever, following the sale in Electrica state one year later.
“Romgaz’s listing on the Bucharest Stock Exchange and the London Stock Exchange was an important moment in the history of the company. Through the listing, the degree of transparency and communication has increased as far as the relationship with investors, the business environment and the public in Romania and abroad are concerned. Romgaz has fully assumed the responsibilities of being a listed the company, which includes reporting and communicating important business events to the stock exchanges. Also, the listing process brings additional benefits to the brand image. Institutional and individual investors, the media in general, the business environment, they all closely follow the evolution of the company and contribute favorably to increasing the reputation, promotion and development of our business”, said Adrian Volintiru, General Manager at Romgaz.
Five years after the listing, the price share surged by 17 percent, while the dividend yield amounted to 64 percent.
“Romgaz is the company having the largest weight in several BVB indices among the mainly state-owned listed companies and represents an important investment anchor for institutional investors, such as investment funds or pension funds. Romgaz sets an example of success for other state-owned companies that could be listed on the Romanian stock exchange. Resuming the process of listing state companies means transparency, and transparency on the stock exchange translates into money. The company’s shareholders will then be able to benefit from the listing process, including potential increases in share price and receiving dividends,” BVB CEO Adrian Tanase stated.
In 2013, the Romanian state, the majority shareholder of SNG, sold 15% of the company’s equity. The offer included the sale of up to 57,813,360 shares issued by the company, as shares and global depositary receipts (GDR). The sale price was RON 30 per share and USD 9.25 dollars per GDR, which made the total value of the offer amount to RON 1.7 billion.
“Romgaz is one of the largest and most traded issuers on BVB. In the first ten months this year, the transaction value of shares was worth RON 850 million. Romgaz is one of the largest listed companies in Romania that has attracted and will attract significant investments from world-class institutional investors, which will help Romania’s capital market to move closer to the strategic goal of promoting to the Emerging Market status. The more outstanding performing companies we have on the stock exchange, the more Romania will benefit from the increase of investments and new jobs, and all this will translate into well-being for the Romanians”, said Lucian Anghel, President of the Board of Governors of BVB.
“The listing on the capital market incentivizes us to perform. At the moment, we have several directions. First of all, we will continue to invest in onshore exploitation, we focus on replacing the gas reserves with new ones. We want to invest in petrochemicals and obviously in strengthening our position in the energy trading markets. In the electricity production field, Romgaz has decided to go for a more efficient approach regarding the Iernut Thermoelectric Plant, meet the environmental requirements and increase safety in exploitation”, said Adrian Volintiru, General Manager of Romgaz.
The value of dividends given by SNG to its shareholders was RON 7.4 billion for the period 2013-2017. The largest shareholder of the SNG, with a 70% stake in shares, is the Romanian state through the Ministry of Energy.