Companies have one month left to decide where they’re heading after RASDAQ shutdown and so far only a handful of small companies, one of them gone insolvent, have opted for transfer on the main market.
Once one of RASDAQ’s “stars”, Armax Gaz (ARAX) is among the companies that decided to switch to an alternative trading system instead of one of the regulated stock markets. The producer of oil and natural gas equipment, with revenue of RON57 million in 2013, will thus move its around RON24 million capitalization to one of the ATSs, either that of the Bucharest bourse or of the Sibiu one.
“We made this decision because of the state of the Romanian economy. The Bourse is being harmed by many negative factors, the business environment is completely hostile to entrepreneurs,” said Mircea Vescan, general manager of Armax Gaz.
The company posted losses of RON3.6 million after the first 9 months of 2014, from gross profit of RON446,000 in the same period of 2013. Armax Gaz saw revenue rise by 31% in the first three quarters, to RON36.4 million.
The same challenging economic conditions made brothers Marius and Emil Cristescu, owners of Bega group, shun the regulated market of the Bucharest bourse for the time being. Foraj Sonde Craiova (FOSB), the most valuable of Cristescu brothers’ RASDAQ listed companies, with capitalization worth RON134 million, will transfer to ATS.
“We’re moving it on the alternative system because of the unfavorable oil market situation,” explained Marius Cristescu. However, the idea of floatation may be reconsidered once oil prices and the market bounce back, said Marius Cristescu.
His caution about the bourse seems to be shared by most of Romania’s entrepreneurs, considering the Bucharest Stock Exchange has not attracted a private floatation since 2008.
Forced to choose a new market to operate on, RASDAQ “stars” are weary and not even those that meet the toughest criteria for transfer to the regulated market are in a hurry to take the step.
(English version by Catalina Apostoiu)