Bucharest, 15 July 2024 – The listing of companies on the Bucharest Stock Exchange (BVB) is an extremely important factor for the consolidation and development of the local stock exchange, for increasing investor confidence in the potential of the Romanian capital market and in the stability and capacity of the local economy, constituting for issuers a reliable alternative of financing and an opportunity to expand their business horizons.
Hidroelectrica has recently marked one year since its listing on the BVB, the largest initial public offering (IPO) in the history of the local stock exchange, a move that has significantly contributed to increasing confidence in the potential of the capital market. The listing of the energy producer has attracted retail and international investors from all over the world and strengthened BVB’s position as a major player in the region.
‘The success of Hidroelectrica’s listing is a strong impetus for new players to enter the stock exchange ring, as the capital market needs strong and fair competition in order to develop in a healthy way’, said Alexandru Petrescu, ASF President.
Hidroelectrica’s presence on the BVB has encouraged other Romanian companies to consider listing, increasing the liquidity and diversity of the capital market. The energy producer’s successful listing is a strong argument for continuing to support single listings.
‘Listings are also important from the perspective of attracting investors to Romania and show that the Romanian market can lead to financing success stories. Listing on the Romanian market brings greater exposure to Romanian companies also from an image perspective,’ said Gabriela Horga, the ASF Vice President, Financial Instruments and Investments Sector Coordinator.
Through its role as a regulator and supervisor of the capital market, the Financial Supervisory Authority ensures to create the necessary premises to maintain the trend of listing companies on the local stock exchange and to strengthen and increase the attractiveness of the capital market.
ASF is carrying out an extensive process of modernization of the regulatory framework, leading to strengthening the role of the capital market in the national economy and puts particular emphasis on the implementation of the provisions included in the National Strategy for the development of the capital market in Romania for the period 2023-2026.
The Authority’s objectives include improving the conditions for listing on the capital market or raising capital. One of the concrete steps taken by ASF to achieve this objective was the introduction of provisions regarding the shortening of the deadline for exercising the pre-emptive right or the process of registering a capital increase, in the draft amendment to Law 24/2017 on issuers of financial instruments and market operations, approved by the ASF Council and sent to the Ministry of Finance.
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