Romania sold a 15% stake in natural gas producer Romgaz for 1.7 billion lei ($534 million) in Romania's largest public offering and the first privatization to include a global depository receipt component to be traded on the London Stock Exchange, news agency Mediafax reports.
The offer price has been set in the upper part of the price range at RON30 per share, or US$9.25 per GDR, with each GDR representing one share, Romgaz said in a statement Friday.
Around 40% of the shares and GDRs in the offering have been sold to institutions and the public in Romania and approximately 60% to institutional investors outside Romania, the statement said.
"The unprecedented reception for Romgaz's IPO ... is a reflection of investor appetite for high quality exposure to the Romanian energy sector," said Constantin Nita, Romania's Minister Delegate for Energy. "This flagship IPO is a platform to introduce investors to other sectors of the Romanian economy which has significant potential for further growth and development."
Following the offering, the Ministry of Economy will hold approximately a 70% interest in Romgaz, investment fund Fondul Proprietatea (FP.RO) will maintain its existing holding of approximately 14.99% and the public free float will comprise the remaining shares.
Goldman Sachs International and Erste Group Bank AG acted as joint global coordinators and joint bookrunners for the offering, which ran between Oct. 22-31. Banca Comerciala Romana and SSIF Raiffeisen Capital & Investment acted as domestic lead managers, while Clifford Chance, through its London and Bucharest offices, has acted as the main legal counsel on the transaction.