The shares of aluminium profile manufacturer Alumil Rom Industry (ALU) traded at an average price of 8.7 RON in their first day of trading on the Bucharest Stock Exchange (BSE), 90% higher than the price at which investors were allowed to buy during the IPO carried out last December.

At the day's close, the quote of Alumil share prices reached 9 RON, after having peaked at 9.25 RON, twice the offering price of 4.6 RON/share. As a result, the market capitalisation of the company exceeded 84 million euros.

The traded volume exceeded 3.5 million shares, or 11% of the company, which is more than half the number of shares sold during the initial public offering (IPO), while the value of the transactions exceeded 31 million RON (9.25 million euros).

"The trend of the Alumil shares during the first day's trading does seems a little surprising, but can be explained due to the great deal of interest in the offering and also due to very high oversubscription rate," stated Daniel Palita, head of the corporate finance department of Alpha Finance, the brokerage firm that prepared Alumil's floatation.

Alumil sold 6.25 million shares through a public offering last December, which account for 20% in the share capital of the company.

The total offering was worth 8.4 million euros. The IPO was 16 times oversubscribed, with investors putting more than 130 million euros on the table.

"The performance of Alumil in the first day is surprising both in terms of price and in terms of volume.

According to calculations, considering there was hardly any room for intraday transactions, it couldn't have been anyone else but the investors that subscribed during the offering, who sold. A 100% profit in four months is a strong motivation to sell," explained Laurentiu Floroiu, trading manager of EFG Eurobank Securities brokerage firm.

There was room for