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Andrei Chirileasa
Editor-in-Chief

Andrei studied finance at the Bucharest Academy of Economic Studies and started his journalism career in 2004 with Ziarul Financiar, the leading financial newspaper in Romania, where he worked for ten years, the last six of which as editor of the capital markets section. He joined the Romania-Insider.com team in 2014 as editor and became Editor-in-Chief in 2016. He currently oversees the daily content published on Romania-Insider.com and likes to stay up to date with everything relevant in business, politics, and life in Romania. Andrei lives with his family in the countryside in Northern Romania, where he built their own house. In his free time, he studies horticulture and tends to his family’s garden. He enjoys foraging in the woods and long walks on the hills and valleys around his village. Email him for story ideas and interviews at andrei@romania-insider.com. 

 

The Capital Markets News section is sponsored by the Bucharest Stock Exchange 

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Investors on Bucharest Stock Exchange pay significant premium to subscribe new Norofert shares

The price of preemption rights for the share capital increase initiated by Romanian organic fertilizer producer Norofert (NRF) surged by 8.2% on Tuesday morning, February 23, to RON 1.45, according to data on the Bucharest Stock Exchange.

The investors who buy preemption rights at this price are actually paying a premium of about 18% for the possibility to buy new shares issued by Norofert in the capital increase operation.

An investor needs 14.58 preemption rights to get one Norofert share at the price of RON 13.1161. For example, an investor who wants to buy 100 new shares will need 1,458 preemption rights, for which he will pay RON 2,114. He will also have to pay the subscription price of RON 1,311, which takes the total investment to RON 3,425.

The price of Norofert shares on the Bucharest Stock Exchange is currently RON 29.2. Thus, an investor can buy 100 existing shares directly from the market for RON 2,920.

The situation is unusual, given that the price of preemption rights plus the price of new shares is usually lower than the current trading price of existing shares. One reason for this is that the investors don't get the new shares right away and have to wait until they can sell them and the trading price of existing shares can go down in the meantime, which makes the investment in new shares riskier.

Norofert is one of the fastest-growing companies on the Bucharest Stock Exchange. Since the beginning of this year, the NRF shares have gained 125%.

editor@romania-insider.com

(Photo source: BVB chart)

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Profile picture for user andreich
Andrei Chirileasa
Editor-in-Chief

Andrei studied finance at the Bucharest Academy of Economic Studies and started his journalism career in 2004 with Ziarul Financiar, the leading financial newspaper in Romania, where he worked for ten years, the last six of which as editor of the capital markets section. He joined the Romania-Insider.com team in 2014 as editor and became Editor-in-Chief in 2016. He currently oversees the daily content published on Romania-Insider.com and likes to stay up to date with everything relevant in business, politics, and life in Romania. Andrei lives with his family in the countryside in Northern Romania, where he built their own house. In his free time, he studies horticulture and tends to his family’s garden. He enjoys foraging in the woods and long walks on the hills and valleys around his village. Email him for story ideas and interviews at andrei@romania-insider.com. 

 

The Capital Markets News section is sponsored by the Bucharest Stock Exchange 

BVB
 

Investors on Bucharest Stock Exchange pay significant premium to subscribe new Norofert shares

The price of preemption rights for the share capital increase initiated by Romanian organic fertilizer producer Norofert (NRF) surged by 8.2% on Tuesday morning, February 23, to RON 1.45, according to data on the Bucharest Stock Exchange.

The investors who buy preemption rights at this price are actually paying a premium of about 18% for the possibility to buy new shares issued by Norofert in the capital increase operation.

An investor needs 14.58 preemption rights to get one Norofert share at the price of RON 13.1161. For example, an investor who wants to buy 100 new shares will need 1,458 preemption rights, for which he will pay RON 2,114. He will also have to pay the subscription price of RON 1,311, which takes the total investment to RON 3,425.

The price of Norofert shares on the Bucharest Stock Exchange is currently RON 29.2. Thus, an investor can buy 100 existing shares directly from the market for RON 2,920.

The situation is unusual, given that the price of preemption rights plus the price of new shares is usually lower than the current trading price of existing shares. One reason for this is that the investors don't get the new shares right away and have to wait until they can sell them and the trading price of existing shares can go down in the meantime, which makes the investment in new shares riskier.

Norofert is one of the fastest-growing companies on the Bucharest Stock Exchange. Since the beginning of this year, the NRF shares have gained 125%.

editor@romania-insider.com

(Photo source: BVB chart)

Normal
 

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