Listing of Fondul Proprietatea: ecstasy for the Stock Exchange, prolonged agony for former owners

The listing of Fondul Proprietatea (Property Fund) injected adrenaline into the weak heart of the Bucharest Stock Exchange, encouraging investors to daydream. Yet former owners have to wait before they can see their dreams come true.

Yesterday, January 25th, Fondul Proprietatea made history at the Bucharest Stock Exchange, this being the most awaited listing of the last decade. Hopes of getting rich, illusions of being awarded damages have been given an answer in the very first few minutes of trading, when the Fondul Proprietatea share debuted at a price of 0.602 RON, 39 bani (1 RON-100 bani) less than the nominal value. An opportunity for those who bought shares on the grey market to triple their money, but a misfortune for former owners, who were compensated for the properties confiscated by the communist regime at the nominal value of 1 RON.
"The price will be volatile and I would not attach too much importance to the first-day price. For us liquidity is more important, and the liquidity that the shareholders will receive," said Greg Konieczny, manager of Fondul Proprietatea on the occasion of the listing.

Fondul Proprietatea shares debuted at 0.602 RON on the Stock Exchange yesterday, and ended up being traded at 0.65 RON towards the end of the session, above the forecasts of most brokers, who expected the first-day price to be slightly below 0.6 RON.
"It is true that the price of the Fund's share fluctuates, but compensation through shares is a better solution than not getting anything," said Călin Popescu-Tăriceanu, former premier between 2004 and 2008, founder of Fondul Proprietatea and Fund shareholder.
The value of transactions, over 50 million euros, was in fact the true surprise of the day, with over 2.5% of the fund's shares being transferred. The buyers were mostly foreign investors, a good sign for the Bucharest Stock Exchange, which is finally visible at international level.