Romgaz on Friday announced the intention of launching an initial public offering of existing shares and of global depository receipts (GDR) based on shares and of listing the shares on Bucharest Stock Exchange (BVB) and the depository receipts on the London Stock Exchange.
'The initial public offering will have as object maximum 15 percent of the existing shares, in form of stocks and global depository receipts, owned by the Economy Ministry, which operates through the Department for Energy. The offer is addressed to institutional investors and retail investors of Romania, but also to institutional investors on the international market, except for the United States of America, according to the provisions of Regulation S and some qualified institutional investors of the United States of America, according to Rule 144 A. The offer is estimated to be completed by the end of this year, depending on the market conditions,' a company release remitted to Agerpres points out.
Goldman Sachs International and Erste Group Bank AG are common global coordinators and BCR and SSIF Raiffeisen Capital & Investment are local managers of Romgaz public offering, which is part of Romania's privatisation programme, in accordance with the existing policies of market liberalisation and deregulation.
Following the offering, the Economy Ministry will hold at least 70 percent of the company shares, Proprietatea Fund will maintain the 15 percent quota of the shares, and the free float will include the rest of the stocks (the stocks freely traded on BVB).
Romgaz is the largest producer and supplier of natural gas in Romania and, according to the National Energy Regulatory Authority, in 2012 it held a 50.1 percent quota of the domestic natural gas production and it supplied 41.7 percent of the natural gas consumption volume in Romania. The main activity areas of Romgaz include: the natural gas exploration and production, the supply of natural gas, the storage in underground repositories and the electricity production. In 2012, Romgaz produced 5.7 billion cubic metres of natural gas.
Romania is the second largest natural gas market in Central and Eastern Europe, after Poland, with a consumption amounting to 13.5 billion cubic metres in 2012.
The Romanian Government has initiated the gas price liberalisation process. As part of this process, the consumers already have the possibility of choosing their supplier. The Government plans to end the process of gas price liberalisation for non-household consumers by 2014 and for household consumers by 2018. AGERPRES