As the Warsaw Bourse created its alternative trading system in 2007, which attracted more than 400 companies with a capitalization of EUR2.2 billion, and London has had a similar market dedicated to startups in place for two decades, which has reached 3,000 companies, the Bucharest Stock Exchange, too, rethought the alternative trading platform to attract SMEs since banks are reluctant to lend money to businesses just starting out.
The alternative trading system reboot overlapped with the start of trading of two companies: Poland’s Carpathia Capital (CRPC.RO), a venture capital fund valued at 5.5 million lei (EUR1.2 million) and local same-day parcel delivery company Delivery Solutions, the operator of Sameday (SDAY.RO) whose capitalization stands at RON7.8 million. Sameday was established in 2007 and posted RON6.8 million revenue and RON455,000 profit in 2014.
“AeRO is not about reinventing the wheel, there are alternative trading systems everywhere in the world providing companies with an entry point to the main market,” says Octavian Molnar, general manager of stockbroker IFB Finwest. “If one in ten companies listed on this market moves to the main market through an IPO, then AeRO will have accomplished its role.”
Investors bought some 32,500 Sameday shares in the first day of trading, or 3.2% of the company’s share capital. The traded value stood at almost one quarter million lei, while Carpathia Capital raised RON7,900 from investors.
The growth potential of the young companies on the AeRO is greater than that of the mature companies trading on the main market, Molnar says.
“AeRO is for those who take higher risks and want to gain more than they would investing in other stocks.”
AeRO could end the year with 20 new listed companies.
“Our target for this year was to have ten to twenty companies on AeRO,” said Ludwik Sobolewski, chief executive officer of the Bucharest Stock Exchange.
Another goal is to boost the number of retail investors, which is a requirement and the main growth driver for the development of this market, he added.
(English version by Loredana Fratila-Cristescu)