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Romania offers incentives to spur IPOs

Jun 6, 2024, 12:51:14 PMArticle by Alexandru Cristea
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June 6 (SeeNews) - Romania's ministry of European investments and projects will offer non-refundable financing of up to 300,000 euro ($326,268) to companies that want to list on the Bucharest Stock Exchange (BVB), the bourse said on Thursday.

Romania offers incentives to spur IPOs
Source: Bucharest Stock Exchange

As part of the project, which will run from June 7, 2024 to May 31, 2025, companies interested in launching an initial public offer (IPO) or making a private placement and listing on the BVB can receive between 70,000 and 300,000 euro in funding, the bourse said in a press release.

The project has a total budget of 38.2 million euro and is funded through the National Recovery and Resilience Plan (NRRP) and the state budget. Funding applications will be evaluated on a 'first come, first served' basis, and the amount of non-refundable financing that each company will receive depends partly on whether it intends to list on the BVB's main regulated market or on the AeRO secondary market, as per the statement.

"The value of the allocated financing represents a maximum percentage of 70% of the eligible expenses, but not more than 8% of the value of subscriptions to newly issued shares following an initial public primary offer, a mixed offer or a private placement. The difference between the total eligible expenses of the project and the non-refundable financial aid granted represents the beneficiary's own contribution or the co-financing of the eligible expenses," the BVB explained.

Romanian fuel distribution company JT Grup Oil [BSE:JTG] is currently conducting an IPO until June 10, following which it plans to list on the Bucharest bourse.

Last month, Romanian integrated energy and power infrastructure company Premier Energy [BSE:PE] listed on the BVB. The European Bank for Reconstruction and Development (EBRD) acquired a 3.2% stake in the company in the IPO.

Shares in Premier Energy changed hands 0.95% lower at 20.9 lei ($4.57/4.2 euro) as at 1103 CET on Thursday.

(1 euro=4.9758 lei)

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