Romania's Romgaz to Sell 15 Percent of Shares in Market Debut

Reuters

BUCHAREST, Oct 11 (Reuters) – The biggest Romanian producer of natural gas, state-owned Romgaz, plans to offer 15 percent of its shares for sale in a stock market debut this year, the company said on Friday.

The initial public offering (IPO) is part of a wider privatisation plan agreed between Romania and the International Monetary Fund, which has led aid deals for the country since 2009.

"Romgaz intends to apply for the admission of the shares to trading on the Bucharest Stock Exchange and for the GDRs to be admitted to listing to the standard segment of the Official List of the United Kingdom Listing Authority and to trading on the regulated market of the London Stock Exchange," it said.

The offering is expected to be completed by the end of 2013, subject to market conditions, it said in a statement.

It said the offer would be made to institutional and retail investors in Romania and to qualified international institutional investors outside the United States.

It named Goldman Sachs International and Erste Group Bank AG as joint global coordinators and joint bookrunners, while Banca Comerciala Romana SA and SSIF Raiffeisen Capital & Investment SA were appointed domestic lead managers.

After the offering, investment fund Fondul Proprietatea will keep its existing 15 percent holding.

Romgaz has a share of 50.1 percent of domestic natural gas output and supplied 41.7 percent of domestic consumption.

Its core business segments include gas exploration, underground gas storage and electricity production.

In 2012, Romgaz produced 5.7 billion cubic metres of natural gas and is also the largest underground gas storage operator.

Its earnings before interest, tax, depreciation and amortisation (EBITDA) were 1.1 billion lei ($334 million) in the first six months of 2013 against 1.2 billion in the same period of 2012 on revenues of 3.8 billion lei. ($1 = 3.2929 Romanian leus)

(Reporting by Radu Marinas, editing by Patrick Lannin)

 



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