Bucharest Stock Exchange 30th Anniversary: Largest companies on BVB stress growth over the years
The third day of events dedicated to the 30th anniversary of the Bucharest Stock Exchange, held on Wednesday, November 19, centered around the largest companies on the local market and Romanian state authorities. Those present said that BVB is a success story and that there is still ample room to grow.
From the part of the authorities, Viorel Baltaretu (secretary of state in the Ministry of Economy), Alexandru Petrescu (president of the Financial Supervisory Authority), Gabriel Avramescu (first-vice-president of ASF), Leonardo Badea (first-vice-president of the Romanian National Bank), and Pavel-Casian Nitulescu (state secretary in the Ministry of Energy) were in attendance.
Speaking in the opening section, Viorel Baltaretu argued that a strong economy needs a strong stock market. He also highlighted the intention of the Romanian government to further list shares of state-owned companies to boost BVB’s liquidity and free-float.
ASF head Alexandru Petrescu, in turn, noted that 270,000 investors are present on the BVB, and a million more through pension funds. The Stock Exchange also reached RON 500 billion in total capitalization, a feat for the investors’ community.
Leonardo Badea, speaking as a representative of the Romanian National Bank, noted that listed companies have better financial outcomes compared to non-listed, non-financial companies. They have lower debt ratios, better liquidity, and better financial health. He concluded by saying that Romania has ample room to grow through the Bucharest Stock Exchange.
The largest companies on the Romanian Stock Exchange, such as Antibiotice Iasi, Aquila Part Prod, Banca Transilvania, BRD-Groupe Societe Generale, Digi, Electrica, Hidroelectrica, MedLife, OMV Petrom, One United Properties, Purcari Wineries, and Sphera Franchise Group, were also represented at the event. Joining them were representatives of Franklin Templeton, administrator of Fondul Proprietatea, but also those of Infinity Capital, and Longshield Investment.
Liviu Vatavu, director of corporate governance at drugmaker Antibiotice, said that the company's share prices rose by 500% in the last 4-5 years. “Antibiotice and the Stock Exchange grew together,” he said.
Since many of the largest companies on the Bucharest Stock Exchange have been listed for decades, they have witnessed record highs and periods of difficulty, according to Acquila Part Prod director for the relationship with investors, Jean Dumitrescu. “Going public brings more rigor, transparency, and visibility, but also a different impact when it comes to the relationship with investors,” he added.
Romania’s largest bank and the first one to go public, Banca Transilvania, was represented at the event by deputy CEO Bogdan Plesuvescu, who presented the growth of the company. Since its listing in 1997, BT’s market cap has risen by 1,000%, and the number of locations has grown from a mere 20 to over 550, reaching over 4 million customers.
In turn, Serghei Bulgac, CEO of telco giant Digi, said that funding sourced from the BVB helped the company become a regional champion, now active in Spain, Portugal, and Belgium.
Speaking towards the end of the event, Bucharest Stock Exchange director general Remus Vulpescu said the institution already plays a regional level. “In the next 30-year period, even in the next few months, we and our Moldovan partners will construct a new stock exchange in Chisinau, as a result of the memorandum of understanding with the government of the Republic of Moldova,” he said.
(Photo source: Bursa de Valori Bucuresti on Facebook)
