The government has set a price range of 24 to 32 lei (EUR5.39 to EUR7.18) a share for Romgaz’s initial public offering of shares and global depository receipts (GDRs) to be traded in Bucharest and London, respectively.
The IPO will start Monday and is due for completion on October 31. The amount that could be raised ranges between RON1.38 billion and RON1.85 billion.
Romgaz has hired a consortium comprising Austria’s Erste Bank AG (EBS.RO) together with its local subsidiary BCR, US bank Goldman Sachs and Raiffeisen Capital & Investment to help with the offering in Bucharest.
Mellon Bank of New York will assist with the GDRs listing in London, people familiar with the matter told Mediafax.
The IPO will include three separate packages for corporate and retail investors, with small retail investors benefiting from a discount of 3% to 5% of the final price, depending on the subscription date.
Romgaz is Romania’s largest natural gas producer and supplier, covering around 50% of the domestic output. The company produced 5.7 billion cubic meters of gas in 2012.
Romgaz is majority owned by the Energy Department. The company reported a net profit of 1.24 billion lei (EUR281 million) in 2012, up 20% on the year, on total sales of RON3.84 billion. (EUR1=RON4.4511)