First IPO in two years, first failure

The initial public offering of Hidraulica Plopeni (HPR) producer of hydraulic pumps was just 0.04% subscribed, the lowest level registered by an IPO launched on the Stock Exchange in the past 10 years.

Four investors, who subscribed 38,000 shares worth 4,180 RON (less than 1,000 euros) out of a total of 97 million shares put up for sale, participated. The company had planned to raise 10m RON (2.3m euros) to accomplish its investments plans in the field of green energy.
The subscription degree of Hidraulica Plopeni offering is even smaller than the one of the listing offer of Apa Stareţului mineral water producer carried out five years ago, which raised 1.5% from the targeted sum.
Hidraulica Plopeni pledged, through the prospectus, its floatation on the Bucharest Stock Exchange irrespective of the amount of cash through the IPO, so that it has to request admission to trading within 30 days.
"The only explanation I can give for the lack of interest in Hidraulica IPO is the market context. Let us not forget the state also delayed its listings this year. Brokers say a lot of active money is blocked in FP stock", stated Nicolae Gherguş, the general manager of Confident Invest, the brokerage that handled Hidraulica IPO.