June 20 (SeeNews) - The Bucharest Stock Exchange (BVB) will add the Netherlands-based Digi Communications [BSE:DIGI], which is the majority owner of Romanian company RCS&RDS, to its BET and BET-TR indices starting July 13.
Digi's inclusion will take the total number of the components of the blue-chip BET index to 13, BVB said in a press release on Monday.
Shares of Digi started trading on BVB on May 16, following the successful closing of the largest IPO of a private company concluded on the Romanian capital market. The value of the offering topped 944 million lei ($230.3 million/205.8 million euro).
"The capitalization of all the companies listed on BVB exceeds 37 billion euro ($41.4 billion), out of which more than 20 billion euro is represented by Romanian companies. DIGI was the largest private IPO in the history of the Romanian capital market, and the Index Committee decided to include this issuer in the main index of the stock exchange,” BVB chairman Lucian Anghel said.
The weights of the indices’ components, i.e. the free-float factors, the representation factors and the price correction factors, will be determined based on the number of shares and closing prices registered at the end of the trading session of June 22, 2017, BVB said.
Digi's shares were traded 1.53% up at 39.8 lei as at 1123 CET on the BVB on Tuesday.
This is the second time this year when BVB expands the composition of its main share index. In March, it included Romanian private healthcare services provider MedLife [BSE:M] and Romanian majority state-owned oil pipeline operator Conpet [BSE:COTE] into both the BET and the BET-TR indices.
Medlife shares were traded 1.12% lower at 35.4 lei on the BVB at 0853 CET.
Conpet shares rose 1.15% to 131.5 lei on the BVB at 1130 CET.
BET is the first index developed by BVB and represents the reference index for the local capital market. BET reflects the performance of the most traded companies on BVB’s regulated market, excluding financial investment companies (SIFs). It is a free float market capitalization weighted index, with the maximum weight of its components of 20%.
BET Total Return index (BET-TR) is a free float weighted index of the 12 most traded companies listed on the regulated market and is adjusted to also reflect the dividends paid by constituent companies.
(1 euro =4.5859 lei)