Brokers: Contor Group stocks will dive below the public offering price

The 31 million securities brought to the market, equivalent to 25% of the issuer’s common capital, had a subscription rate of 101% at IPO. The nominal value of the stocks is 0.10 lei/share, being priced at 0.38lei/share.

The initial public offering ended in late March, the company being allowed to trade securities at the Bucharest Stock Exchange by the institution's board in October, whereas the company is not yet publicly traded, and the 11.7 million lei amount of investors who subscribed for the shares was blocked for almost eight months.

The listing will probably start in January

Gabriel Aldea (photo), head of Front Office department of Intercapital Invest said that once this long time period has elapsed, the investors who subscribed for the shares will be affected, as one of the most important features of the listed share is the possibility of fast conversion into cash, which was practically annulled in this period.

According to a report posted on the company’s webpage on December 9, a new General Meeting of Shareholders has been settled, where the participants will talk on the listing date, proposition which will be submitted to the Stock Exchange. Inside sources said the listing will most likely take place in January.

“It is hard to read the investors’ reaction to the initial day of trading; however this will depend upon the market’s trend at that moment. It will require an expertise on the company’s nine-month and annual earning reports, and investors will decide whether the stocks are overpriced”, said Mirela Maxim, director of Bucharest-based branch of Capital Invest.

She added that the shares would most likely fall below the public offering price, however she could not estimate the extent of the decline.

Translated by Camelia Oancea