The effervescence of the Bucharest Stock Exchange (BVB) exceeded in the first six months even the most optimistic expectations of the officials, with12 entrepreneurial companies listed on the stock exchange, along with the listing of 28 financial instruments, both on the shares and bonds segment, with a total value of over 700 million euros. All the BVB indicators ended the first half of the year on green.
The first half of the year brought to the stock market 12 share issues: a company listed on the Regulated Market of the Bucharest Stock Exchange (BVB) and 11 listed on the Multilateral Trading Segment of the BVB. The total value of the stock packages listed to the stock exchange in the first 6 months exceeded the 77 million in euro equivalent. Also in the first half of this year, 16 new financial instruments were listed on the fixed income segment: 7 on the Regulated Market and 9 on the Multilateral Trading System. The total value of the bonds listed on BVB during this period was 3.1 billion in lei or the equivalent of 633 million in euros. In the first six months, issues of bonds and bonds totaling more than 700 million euros were listed on BVB.
12 new companies listed shares in BVB in the first 6 months totaling 77.27 million euros
Issuesuer
MAM Bricolaj |
Value (M Euros)
1,74 |
shares sold
25% |
Segment
SMT |
Listing type
PP |
Underwriter
TradeVille |
SafeTech Innovations | 0,51 | 20% | SMT | PP | TradeVille |
Agroland | 1,62 | 15% | SMT | PP | TradeVille |
Star Residence Invest | 1,66 | 77% | SMT | PP | BRK Financial Group |
Firebyte Games | 1,00 | 25% | SMT | PP | BRK Financial Group |
Raiko | 0,39 | 11% | SMT | PP | TradeVille |
Vifrana | 1,93 | 31% | SMT | PP | Goldring |
Agroserv Măriuța | 3,94 | 24,90% | SMT | PP | BT Capital Partners |
Transport Trade Services | 58,50 | 50,00% | PR | IPO | Swiss Capital |
Agroland Agribusiness | 1,2 | 20% | SMT | PP | TradeVille |
Bonas | 2,00 | 40,75% | SMT | PP | Interdealer Capital Invest |
Simtel Team | 2,78 | 14,95% | SMT | PP | BT Capital Partners |
Table 1: Issues of shares that entered trading on the Bucharest Stock Exchange between 01.01 – 01.07.2021. PR = Regulated Market; SMT = Multilateral Trading System; IPO = Initial Public Offering; PP = Private Placement. Source: BVB
16 bond issues listed on the BVB in the first 6 months, totaling 3.1 billion lei (633 million euros)
Issuesuer
iHunt |
Value (M)
7 |
Currency
RON |
Interest rate
8,75% |
Segment
SMT |
Listing
PP |
Underwriter
TradeVille |
Golden Foods Snacks | 4 | RON | 9% | SMT | PP | BRK Financial Group |
Utilitech Services | 4,9 | RON | 8,5% | SMT | PP | Intercapital Invest |
Ministerul Finanțelor Publice | 385,6 | RON | 2,85% | PR | IPO | BT Capital Partners, BCR si BRD |
Ministerul Finanțelor Publice | 323,8 | RON | 3,10% | PR | IPO | BT Capital Partners, BCR si BRD |
Ministerul Finanțelor Publice | 140,4 | EUR | 1,55% | PR | IPO | BT Capital Partners, BCR si BRD |
Agricover | 40 | EUR | 3,5% | PR | PP | BRD si BCR |
Impact Developer & Contractor | 6,6 | EUR | 6,40% | PR | PP | TradeVille |
iHunt | 7 | RON | 8,75% | SMT | PP | TradeVille |
Qualis Properties | 2,1 | EUR | 9% | SMT | PP | BRK Financial Group |
Alive Capital | 10 | RON | 8% | SMT | PP | Intercapital Invest |
Restart Energy One | 16,3 | RON | 9% | SMT | PP | Goldring |
Raiffeisen Bank | 400,5 | RON | 3,086% | PR | PP | Raiffeisen Centrobank |
BCR | 1.000 | RON | 3,9% | PR | PP | BCR |
Nemo | 1,5 | EUR | 7% | SMT | PP | Intercapital Invest |
Alser Forest | 1,5 | EUR | 8% | SMT | PP | Intercapital Invest |
Table 2: Bond issues that entered trading on the Bucharest Stock Exchange between 01.01 – 01.07.2021. PR = Regulated Market; SMT = Multilateral Trading System; IPO = Initial Public Offering; PP = Private Placement. Source: BVB
We exceeded the most optimistic expectations in the first six months: 28 financial instruments were listed on the stock exchange, both in the shares and bonds segments. The success of these rounds of financing fuels future success, strengthens the position of the capital market as an essential pillar of financing, and encourages the presence of companies on the stock exchange, but also of investors. In essence, the first semester can be summarized as follows: more issuers, more areas of activity, more effervescence. Why is the capital market so successful? Because it is accessible, efficient, and liquid. It has become much more accessible due to the degree of digitization, it is efficient because it allows easy access to capital and is liquid because the seller or buyer easily finds a counterpart. In addition, the stock market is increasingly present in the public space and has become a mandatory landmark when it comes to serious development plans, “said Radu Hanga, Chairman of the Board of Directors of the Bucharest Stock Exchange.
“The stock market currently offers considerable sectoral diversification for investors who want to disperse their risks, and the investment opportunities are remarkable. From companies with a solid history to companies with accelerated growth potential, from fixed income instruments to stocks and structured products, the current market configuration allows the creation of portfolios with a high degree of customization that correspond to the risk profiles of investors. In terms of listings, we see accelerated growth in the stock segment in the first half of the year. The new wave of entrepreneurial companies, 12 only in the first 6 months, which came to the stock market attracted substantial interest from individual investors, who understand to take advantage of current opportunities and overwritten the allocated tranches, in some cases even less minute. The stock market has come closer to people and companies, and recent results show that we are developing the market in the right direction, ”said Adrian Tănase, General Manager of BVB.
The average daily liquidity on all types of financial instruments increased by 54% in the first six months compared to the first half of the previous year, from 35.6 million lei (equivalent to 7.4 million euros) to 54.9 million lei (equivalent to of EUR 11.1 million). Stock market liquidity measured in terms of total trading value increased by 41% in all types of financial instruments, from 6 billion lei (1.25 billion euros) in the first six months of 2020 to 8.5 billion lei (1 , 7 billion euros) in the first half of this year.
The growth of investment activity led the capital market to new highs in June. At the end of the trading session on June 28, the BET index reached an all-time high of 11,967 points, and the BET-TR index posted a historical record of 20,784 points. June continued the monthly series of increases with an advance of 3.9% for BET and 5% for BET-TR. After the first 6 months of the year, BET increased by 21%, and BET-TR by 24.9%.
The market value of local companies listed on BVB’s main market exceeded the level reached before the onset of the coronavirus pandemic. Thus, the capitalization of the Romanian companies present on the main segment of the Bucharest Stock Exchange exceeded 123 billion lei, the equivalent of 25 billion euros.
Translated from Romanian by Service For Life S.R.L. |