Adrian Tănase, BVB: "The stock market offers capital with a greater appetite for risk, compared to bank credit"

The capital market, through the Bucharest Stock Exchange (BVB), offers capital to entrepreneurs with a greater appetite for risk compared to bank credit, Adrian Tanase, the General Director of the BVB, said yesterday on the occasion of a specialized event.

Adrian Tănase stated: "From 2010 until now, we have had more than 50 listings in the share area alone, of which 15 on the Regulated Market and 39 on the AeRO Market. The pace has accelerated very strongly in the last three to four years, and here I am referring to the year 2021, which, for us, gave a very strong signal. Almost half of these listings took place in 2021. Primarily, this came about due to macro conditions that were very encouraging at the time. Interest rates have been cut, which means a very high appetite for risky assets. For us it was a signal and it is very clear that there was a click among entrepreneurs, who began to discover the capital market, study it carefully and see its advantages, because there are many advantages for a company that list".

The General Director of BVB added: "The capital market represents a financing channel complementary to the banking one, not an alternative one. It is a different type of capital, and entrepreneurs need to understand this. First, entrepreneurs need to be aware of what their needs are, what is the capital profile they need, and then address the right channel. A lot of entrepreneurs still go to the bank and apply for venture capital. However, the bank does not have that capital. Capital with a greater appetite for risk exists in the capital market, on the Bucharest Stock Exchange. In 2021, I think this click was made. Maybe the idea of the capital market is not widespread enough in the community of entrepreneurs, but it is a start that I think will show its results in time".

Present at the same event, Bogdan Chetreanu, Head of the Issuers and Public Offerings Service at the Financial Supervisory Authority (ASF), pointed out that there is great interest from companies from the Republic of Moldova to list on the Bucharest Stock Exchange.

"We are waiting for the listing of an issuer from the Republic of Moldova, registered in Cyprus. A big player also on the Romanian energy market - Premier Energy. The company is in the process of submitting the final documentation to the ASF and we expect it to be on the market in a very short time. We are also in discussions with the largest bank in the Republic of Moldova. There is a great interest of companies from the Republic of Moldova to list on the Bucharest stock exchange. There is a will on both sides and there are several players involved (...). Now we are working on harmonizing the legislation together with our partners from the Republic of Moldova, in the sense that we offer them consultancy", said Bogdan Chetreanu, at the "Mirsanu IPO Challenge 2024" event.

According to the ASF representative, it is very possible that this year, in addition to Premier Energy, there will be an IPO of a private Romanian company at the BSE.

Premier Energy is a vertically integrated energy infrastructure company that is preparing its listing on the Bucharest Stock Exchange through an initial public offering that can be completed in May 2024, depending on the conditions on the capital market, according to a recent press release from the group. Through the public offer, the company intends to obtain approximately 100 million euros resulting from a capital increase.