Market value of listed Romanian companies at highest level in 9 years

The market value of the Romanian companies listed on the Bucharest Stock Exchange (BVB) reached EUR 20.4 billion last week, the highest level in the last nine years, after the listing of Digi Communications, a major supplier of telecom services in Romania and Hungary. “Romania has left the shallow waters of low valuations and embarked onto a blue water boat capable to use strong winds in our favor and to withstand tough conditions,” said BVB general manager Ludwik Sobolewski. He added that Romania is on the investors’ radar because it offers a level of growth and stability that is rarely encountered today, coupled with dynamism and creativity. The capitalization of the Romanian companies listed on the Bucharest Stock Exchange represents about 12% of Romania’s GDP, said BVB president Lucian Anghel. The Bucharest bourse saw new records last week. The Digi shares were the most traded shares in a single day in the last 3 years and a half, with 3,270 transactions on May 16, the day they entered the bourse. Digi Communications NV is a company registered in the Netherlands through which the local investor Zoltan Teszari controls RCS & RDS, which owns the largest cable TV network in Romania and the fourth mobile phone company Digi Mobil. The company’s shareholders sold a stake of over 25% in an initial public offering (IPO) at the beginning of May, for some EUR 210 million. On May 16, the company's shares began to be traded. Its market capitalization is currently over EUR 870 million. Romanian group Digi’s shares fall below IPO price amid corruption probe editor@romania-insider.com