“The decision to switch to BVB was very well thought and the move was not only bold, but also necessary for a company of our size,” says Liviu Iliasi, general manager of Conpet Ploiesti (COTE).
The management of the crude oil transporter, a state-run company with revenue of EYR75-80 million annually, analyzed the idea for one year before shifting to the main market.
The company’s bourse value rose by 13% after transfer to the BVB, to RON430 million.
Conpet is among the few companies that did not wait for the Romanian authorities to decide on the old problem of RASDAQ status. Since 2008 to the present, 20 companies moved to the “first league” of the bourse, bringing along an overall capitalization of RON1.9 billion.
For many of these companies, the transfer coincided with the onset of the crisis, and market value in some cases eroded by as much as 90%, while for those companies that listed later the value went up by as much as 300%.
“We went to the bourse to fund our development plans. We planned to operate a share capital increase to allow the company to grow in a shorter period of time, but we had the bad luck of getting listed after the crisis onset,” recounts Alin Radasanu, financial manager of healthcare company Ropharma (RPH), which transferred to BVB in 2010.
Ropharma operated several capital increases in the meantime, but what’s significant is that the switch to the regulated market brought the company on the radar of new investor categories. From another perspective, the move to the main market is also good news for minority stakeholders, which can more easily find buyers for their stakes.
On the other hand, beyond obligations to constantly inform shareholders and the bourse about the company’s activity and results, presence on the regulated market also envisages adopting the IFRS accounting system and the periodical auditing of accounting balance sheets.
This is not a burden, but, on the contrary, it requires accuracy in drawing up financial situations, offering investors a clearer image over the company, believes Alin Radasanu.
BVB must not passively wait for new issuers, but must play the role of a mediator between companies and investors, as well as that of adviser for both categories, says Manuel Popa, general manager of Conted Dorohoi (CNTE), a family business that transferred to the BVB in 2013.
(English version by Catalina Apostoiu)