Two days before the closing of Transgaz's offering, the large investor tranche is 26% oversubscribed and the small investor tranche is 95% oversubscribed. Brokers, however, expect the last day of the offering to see the highest amount of subscriptions, which means oversubscription could significantly increase.
The large investors placed large subscription orders yesterday during the initial public offering of natural gas transmission company Transgaz Medias (TGN), seeking to get a total number of over 800,000 shares worth a total of 155 million RON (44 million euros).
Yesterday, the tranche of the large investors that accounts for 60% of the offering had been subscribed 126%, compared with 12% on Tuesday.
The biggest subscription order placed on the large investor tranche thus far was for almost 270,000 shares worth 51.7 million RON (14.7 million euros), according to the brokers of the offering. Another investor subscribed 200,000 shares worth 38.4 million RON (10.9 million euros), with the rest of the orders staying below 100,000 shares.
"I believe many of the large investors will subscribe in the last day and I expect a high oversubscription rate," stated Adrian Manaila, head of Galati-based Eldainvest.
As far as the small investor tranche is concerned, oversubscription has reached almost 195%, with a total of more than 3,200 orders placed for 916,000 shares. The total value of the subscriptions of small investors stood at 175.8 million RON (50 million euros), and the average value of their subscriptions exceeds 15,000 euros.
All in all, the 1.8 million shares were subscribed on the two tranches, worth more than 98 million euros, 53% above the 1.17 million-share offering.
After the offering has closed, allotment of shares will be done separately for each tranche, and each investor will get a number of shares proportionate
