Romania hopes to attract between EUR 312 million and EUR 415 million by listing 15 percent of the state – owned gas company Romgaz. Based on the established price range for this IPO, the company would thus be valued between EUR 1.5 billion and EUR 2 billion, which is two times higher than its 2012 turnover.

The Government recently approved a price range between RON 24 and 32 per share, said the Romanian Minister Delegate for Energy Constantin Nita. “The price range was established using a marketing report of the consulting consortium and is close to the quotation of Petrom's shares,” Nita explained. He did not mention the amount the state aims to raise, but based on the minimum and maximum share price and the number of shares on sale during the IPO, it will stay between EUR 312 million and EUR 415 million.

The public offer for listing Romgaz will start on October 21 and last until the end of the month. Besides listing on the Bucharest Stock Exchange BVB, Romgaz' global deposit certificates will also be listed on the London Stock Exchange.

Most of the shares on sale during the IPO in Romania – 85 percent, are for institutional investors, and the rest, for small investors. There will be a 5 percent discount in the first week for small investors who buy over 10,000 shares, and 3 percent in the second week of the IPO. Should the offer be successful, the shares will be listed on the Bucharest Stock Exchange mid-November.

The offer is brokered by Goldman Sachs International and Erste Group Bank AG, while BCR and SSIF Raiffeisen Capital & Investment are the local managers of the offer.

Following the IPO, the Economy Ministry will hold 70 percent in Romgaz, Fondul Proprietatea will keep its 15 percent stake, and the rest of 15 percent will be free floating.

Romgas is the largest natural gas producer and supplier in Romania. It produced half of Romania's natural gas production in 2012 and supplied 41.7 percent of the gas consumed in the country during the same year. In 2012, the company produced 5.7 billion cubic meters of natural gas. It runs 3,200 wells across the country.

The company's turnover in 2012 was of EUR 863 million, while its net profit was of EUR 280 milion.

editor@romania-insider.com