Bucharest Stock Exchange sees more action in 2017

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

DIGI Communications was the biggest company to go public last year, after selling a 25.6% stake for EUR 207 million, in the largest initial public offer of a private company that ever took place on BVB.

Nine bond issues were also listed on the local market last year, with the biggest of them carried out by real estate developers Globalworth and NEPI, and financial groups UniCredit Bank and International Investment Bank.

“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. The total value of transactions which took place on BVB in 2017 exceeded EUR 3 billion, 24% above the 2016 level. The average daily equity trading value increased by a third compared to 2016 and reached the maximum of the last 3 years, namely EUR 10.5 million.

The BET-TR index, which reflects the returns of the most important companies listed on BVB, including their dividends, had an increase of 19% last year.

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