Only 15 Romanian companies have raised significant funding (ofabove 10m euros) from the Stock Exchange in the past six years,through IPOs or capital increases, while the vast majoritypreferred to borrow from banks. This can partly explain whyhundreds of Romanian companies have gone insolvent in the past twoyears, unable to pay their instalments any longer. Calculationsshow that in the past five years (2005-2010) Romanian companieshave raised a little more than 600m euros from the Stock Exchangethrough IPOs and capital increases through cash contributions byshareholders. By comparison, since late 2004 to April 2010, thevolume of non-governmental lending granted to the private sectorrose by around 20bn euros, pointing Romanian companies' dependencyon banking funding. Many explanations can be found for thissituation, such as the aggressive expansion of foreign banks inRomania since 2004 and ease of getting banking loans, as comparedto the quite intricate procedures in the case of public offeringsor capital increases. Moreover, the capital market's lack of depthmakes foreign investment funds' entrances or exits generate seriousprice fluctuations, which could cause listed companies trouble.
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
