The listing of water power corporation Hidroelectrica is needed for the Romanian capital market to upgrade to the status of emerging market, and the Romanian state will be the main beneficiary of this promotion, Chairman of the Bucharest Stock Exchange (BVB) Administration Board Lucian Anghel told the 6th edition of the Individual Investors Forum on Saturday.
OMV Petrom, Romgaz, Banca Transilvania are also on the list of companies that are eligible for promoting Romania from frontier to emerging market.
“The size requirement of 1.3 billion dollars, the free float of 630 million dollars are conditions set so high by the rating agencies that we can’t find companies this size other than in the state’s yard. And the state is the main beneficiary of the upgrade from frontier to emerging market. That’s what we need Hidroelectrica for,” said Lucian Anghel.
The Chairman of the Bucharest Stock Exchange Administration Board explained that acquiring the emerging market status would help increase the value of companies.
“On other markets that have been upgraded from frontier market to emerging market the median evolution of the price of the shares in the main index increased between 40-50 pct and 200 pct. It’s a fantastic growth in a period of two years. This is a once in a lifetime situation and if we succeed, the value of Romanian companies is supposed to increase. The state should benefit because it controls the major listed companies. And then there are also more than six million Romanian who invested in pillar II and III pension funds, who will benefit too from the stock value increase. It is a win-win for everyone,” stressed Lucian Anghel.