• Four IPOs worth over a quarter billion euros and 9 corporate bonds issuances, in RON and EUR, took place in 2017 at Bucharest Stock Exchange
  • The market capitalization of the companies listed on the Main Market of BVB exceeded a record level of EUR 35 billion
  • The average trading value for all the financial instruments amounted to EUR 12.1 million last year, up by 25% as compared to 2016
  • Total return indices reported outstanding growth figures: BET-TR up by 19%, BET-XT-TR up by 24%
  • Lucian Anghel, BVB: The local capital market was noted in 2017 for the high number of IPOs, all four listings coming from the private sector. In a context where the cost of financing is expected to grow in 2018, more and more companies should consider listing on the stock market

Bucharest Stock Exchange (BVB) registered one of its most dynamic years in 2017. Four private companies listed their shares on BVB last year alone, which also recorded the largest IPO of a private company in the history of the local capital market.

DIGI Communications was the first company to go public last year, after selling a 25.6% stake worth RON 944 million (EUR 207 million), the largest initial public offer of a private company which ever took place on BVB. More companies kept on listing their shares on the stock exchange last year: AAGES (sold 15% from their equity for RON 5.5 mil. or EUR 1.2 mil.), Transilvania Broker de Asigurare (sold 25% for RON 9 mil. or EUR 2 mil.), and Sphera Franchise Group (25% for RON 285 mil. or EUR 62 mil.).

For the corporate bonds, 9 issuances took place last year: Globalworth (EUR 550 mil.), NE Property Coöperatief (EUR 500 mil.), UniCredit Bank (RON 610 mil.), International Investment Bank (RON 300 mil. and EUR 60 mil.), Impact Developer & Contractor (EUR 12.52 mil.), Vrancart (RON 38.25 mil.), Superbet Betting & Gaming (RON 9.7 mil.), Bittnet Systems (RON 4.5 mil.) and Investia Finance (RON 1 mil.). For the first time in the history of the local capital market, the settlement in euros became available in 2017.

“The local capital market was noted in 2017 for the high number of IPOs, all four listings coming from the private sector, and dividend yields among the largest in the world according to analysts. We hope these trends will continue this year. In a context where the cost of financing is expected to increase in 2018, more and more companies may consider listing their shares on the stock market to develop their businesses,” said Lucian Anghel, President of the Board of Governors at BVB.

The capitalization of the Romanian companies listed on BVB rose last year by 20% compared to 2016 and reached almost EUR 20 billion. A historic record of more than EUR 35 billion was also recorded in the capitalization of all listed companies on the Main Market of BVB. The total value of transactions which took place on BVB in 2017 exceeded EUR 3 billion, 24% above the 2016 level or 28% over the average of the last 10 years.

The average daily trading value ​​of all types of financial instruments reached EUR 12.1 million last year, up 25 percent from 2016. For the equities segment, the average daily trading value increased by 32 percent compared to 2016 and reached the maximum of the last 3 years.

The shares that investors bought in the companies from the BET-TR index, which includes dividends from BET companies, had an increase of over 19% last year. Nearly 24% growth also occurred for BET-XT-TR, the index that includes the most traded 25 companies listed on BVB and the dividends they pay to investors.

Following the decision of the Board of Governors of the Bucharest Stock Exchange (BVB) from December 11, 2017, it was approved the granting of the Participant to the trading system of the BVB on the regulated spot market and registration with the Participants Register for ING Bank N.V. Amsterdam Branch Bucharest.

 

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