Romanian state to sell part of Petrom shares

Since Monday for two weeks there can be submitted applications for the Petrom shares.

The company, controlled by the Austrian OMV oil concern, was already listed on the stock exchange, so that the state privatized through the Bucharest Stock Exchange almost 10 percent of Petrom shares, just over half of the still held actions.

Of the total number of shares offered for sale, 15 percent were allocated to private investors, individuals.

The total package, the state put up for sale through the stock exchange, was about 5.6 billion shares.

85 percent of the shares are available to institutional investors – banks, investment funds or companies – and the remaining 15 percent can be purchased by anyone through a distribution network offer.

The maximum that can be offered to investors for each share is 46 bani.

The purchase offer must be at least 3 000 shares. For the maximum acceptable price, this means nearly 1 400 lei.

‘The investors can buy the Petrom shares through the networks of three banks in charge of distribution’, President Intercapital Invest Răzvan Paşol said.

‘Investors can contact the bank network of CEC Bank, Banca Transilvania and Bancpost. There the subscription procedure is very simple.’

‘By showing an ID, the individual fills in a form, deposits the subscription money and the shares are purchased’, Răzvan Paşol said.

The maximum – 46 bani per share

From a technical standpoint, the state privatized half of its owned Petrom possession. By the end of next week each person or institutional investor concerned may submit an offer announcing the number of shares they want to buy and the price they offer.

In late July, the Petrom shares, offered for sale by the Romanian state will be allocated to investors. Those offering to higher prices have priority, without exceeding, however, the 46 bani per share.

At equal prices, the shares return to the investor who submitted the offer earlier. The persons interested in buying Petrom shares must take into account that they can already purchase them through the Stock Exchange.

Monday at noon, the Petrom share had the price of 40 bani, meaning with six bani less than the maximum of the ongoing public offer.

Moreover, the price of the maximum public offering, 46 bani, went up a ban from the last year. The minimum price of one Petrom share, in the past year was 30 bani.


Translated by: Iulia Florescu
MA Student, MTTLC, Bucharest University