The offer price has been set in the upper part of the IPO price range at RON30 per share, equating to a US dollar pricing of US$9.25 per GDR, with each GDR representing an interest in one share, Romgaz said in a statement Friday.
Around 40% of the Shares and GDRs in the offering have been sold to institutions and the public in Romania and approximately 60% to institutional investors outside Romania, the statement reads.
“The unprecedented reception for Romgaz’s IPO … is a reflection of investor appetite for high quality exposure to the Romanian energy sector,” said Constantin Nita, Romania’s Minister Delegate for Energy. “This flagship IPO is a platform to introduce investors to other sectors of the Romanian economy which has significant potential for further growth and development.”
Following the offering, the Ministry of Economy will hold approximately a 70% interest in Romgaz, investment fund Fondul Proprietatea (FP.RO) will maintain its existing holding of approximately 14.99% and the public free float will comprise the remaining shares.
Goldman Sachs International and Erste Group Bank AG acted as Joint Global Coordinators and Joint Bookrunners for the offering, which ran between October 22 and 31. Banca Comerciala Romana and SSIF Raiffeisen Capital & Investment acted as Domestic Lead Managers, while Clifford Chance, through its London and Bucharest offices, has acted as the main legal counsel on the transaction.
Main details from Romgaz’s statement:
— The offer price has been set in the upper part of the IPO price range at RON30 per Share, equating to a US dollar pricing of US$9.25 per GDR, with each GDR representing an interest in one Share
— The total size of the offering is RON1.7 billion (US$534 million), comprising 57,813,360 existing shares in the form of shares and GDRs, representing 15% of the existing shares of the company
— The offer price implies a market capitalisation of the company of RON11.6 billion (US$3.6 billion)
— Approximately 40% of the shares and GDRs in the offering have been sold to institutions and the public in Romania and approximately 60% to institutional investors outside Romania
— The inclusion of GDRs with a listing on the London Stock Exchange was a great success permitting several new international funds access to the Romanian capital market for the first time. The total number of GDRs allocated was 20,867,000 compared to 36,946,360 ordinary shares allocated
— Following the offering, the Ministry of Economy will hold approximately a 70% interest in the company’s shares. S.C. Fondul Proprietatea S.A. (FP.RO) will maintain its existing holding of approximately 14.99% interest and the public free float will comprise the remaining shares
— Dealings in the GDRs on the London Stock Exchange under the symbol “SNGR” and dealings in the shares on the Bucharest Stock Exchange under the symbol “SNG” are each expected to commence on 12 November 2013
— The selling shareholder and Fondul Proprietatea have committed to a lock-up period of 180 days after the commencement of trading of the shares and GDRs on the Bucharest Stock Exchange and London Stock Exchange, respectively, subject to certain exceptions and existing obligations
— Joint bookrunners will retain 13% of the gross proceeds obtained by the selling shareholder from the offering to be used for the purpose of conducting stabilisation activities during the 30 days following the commencement of trading of the shares and GDRs
— Goldman Sachs International and Erste Group Bank AG are acting as Joint Global Coordinators and Joint Bookrunners for the Offering. Banca Comerciala Romana S.A. and SSIF Raiffeisen Capital & Investment S.A. are acting as Domestic Lead Managers. Clifford Chance, through its London and Bucharest offices, has acted as the main legal counsel on the transaction