Stock in Cluj-Napoca-based SSIF Broker brokerage sold in the initial public offering launched for the listing of the company on the Bucharest Stock Exchange was oversubscribed by three times.
It was planned that in the case of stock being oversubscribed, shares were to be allotted on a pro rata basis, with each shareholder receiving a number of shares in line with the sum subscribed. Knowing this some investors subscribed more shares than they had initially planned for in order to be sure of receiving the number of shares they wanted when the offer closed.
Investors subscribed shares worth 89.5 billion ROL (2.25 million euros), with the stock being offered for sale at a price of 15,500 ROL/share, while the nominal value per share stands at 10,000 ROL.
"We were counting on all shares being subscribed, but we were not expecting this rate of over-subscription," stated Petru Prunea, chairman of SSIF Broker.
He specified that the subscribing investors included investment funds as well as employees of other brokerage firms. According to SSIF Broker's management, the stock of the company will be floated on the stock exchange next month. Prunea considers a price of 28,000-30,000/share in the first day of trading on the stock exchange would be reasonable in light of this year's financial results.
SSIF Broker representatives project gross profits this year will reach 65-70 billion ROL (1.5-1.7 million euros). Profit per share will be lower than last year, due to the share capital increase.
The number of shares requested by buying investors exceeded 16.5 million, while 5.7 million shares were put out for sale. At the close of the session on Thursday, the shares offered by SSIF Broker were already subscribed, while on Friday, the last day on which stock could still be subscribed, a quarter of an hour before session close the shares put out for sale had been subscribed once again.
Following the offering, SSIF Broker became a publicly owned company (open company) and was going to be the first brokerage to be listed on the capital market.
The main shareholder of the company is Maria Istrate with a stake of 12%. Another important stakeholder is businessman Alin Dicu (the distributor of Ambi Pur products on the Romanian market) with around 10% of stock.
SSIF Broker is one of the most powerful brokerage firms, ranking second in terms of transactions with stock on the stock market after ten months. The company has a market share of 7%.
catalin.ciocan@zf.ro
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