Lawyers: The listing of stakes in "Hidroelectrica" and "Romgaz" could increase the capitalization of the Stock Exchange by 5-10%

The listing of stakes in Hidroelectrica and Romgaz, equal in size to those of Transelectrica and Transgaz, will generate between 5% and 10% of the capitalization of the Bucharest Stock Exchange (BSE), said Radu Boanţă, senior associate of law firm D&B David and Baias.

According to Boanţă, the capitalization of Transelectrica (TEL) and Transgaz Mediaş (TGN) fluctuated between 4% and 6% of the total market capitalization, being higher during the financial crisis, when the shares of other issuers had a steeper fall.

The capitalization of the two companies fell after the listing of the Proprietatea Fund.

"It could be considered that the listing of stakes of Hidroelectrica and Romgaz, similar in size to those of Transelectrica and Transgaz, will have a higher impact, since these companies are very solid from a financial point of view. We consider that the two companies could make up between 5% and 10% of the market capitalization", said Boanţă, quoted by Mediafax.

He added that the listing of Hidroelectrica and Romgaz could have an impact similar to that of the listing of the Proprietatea Fund and will help increase market liquidity.

According to Boanţă, the listing on the capital market of some state companies which are stable from a financial point of view could be a "guaranteed success", which could benefit both investors, as well as the companies themselves, by streamlining their management and their activity.

Transelectrica and Transgaz are already listed on the BSE, with stakes of up to 12% of each. The government intends to sell additional blocks of shares in these companies on the stock exchange, as well as launch public offers for the listing of Hidroelectrica and Romgaz.