October 26 (SeeNews) - Romanian insurer Transilvania Broker raised 9.6 million lei ($2.5 million/2.1 million euro) through an oversubscribed initial public offering (IPO) of a 25% stake and might start trading on the Bucharest Stock Exchange (BVB) at the beginning of November, the bourse said on Thursday.
Transilvania Broker launched the IPO on the BVB on October 24, hoping to raise up to 9.6 million lei through the sale of 625,000 shares.
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The sale offer was closed after a day and a half, when subscription rate of over 270% was reached and over 800 orders from institutional and retail investors were introduced into the system, totalling nearly 1.7 million shares. The final price in the IPO was 15.5 lei per share.
"The listing of Transilvania Broker on the stock exchange certifies transparency. We believe going public has paramount benefits related to our image, transparency, trustworthiness, and notoriety," Transilvania Broker executive manager Gabriel Login said in a statement by the BVB.
In the next couple of years, the insurer aims at a market share of at least 10%, its general manager Dan Niculae added.
The market share of the company has increased over the last three years, from 3.92% in 2014 to 5.8% in 2016.
Transilvania Broker started its activity in November 2006 and will be the first insurance company to be listed on the BVB.
In 2016, it came third in the ranking of insurance brokers active on the local market, with intermediate premiums value of 360 million lei.
(1 euro=4.5988 lei)