Investors who subscribed in the state's initial public offerings (IPOs) conducted on the Bucharest Stock Exchange over the last few years, Transgaz Media[ (TGN) and Transelectrica Bucure[ti (TEL) have so far made 65.7 million RON (15.5 million euros) after subscribing 349.1 million RON (82.3 million euros) in the offerings. The gain comes from the appreciation of stock exchange shares compared with the offering price, and does not include potential dividend earnings, which in the case of Transgaz were substantial.
On the other hand, shares acquired on the stock exchange as part of the offerings conducted by private companies over the last 6 years are now worth less than half on the market compared with their initial value. As a result, investors lost 107.9 million RON (25.5 million euros) in overall sum from private companies' IPOs after contributing 193.8 million RON (45.8 million euros) in funding to these companies.
Investors who in 2007 bought Transgaz shares at a discount price of 191.92 RON can now sell them at an around 21% yield. Similarly, Transelectrica could be subscribed in June 2006 at a price of 16.8 RON as part of the offering, while the current price of shares is 18.7 RON/share, which means an 11.3% yield.
Investors who subscribed in the state's initial public offerings (IPOs) conducted on the Bucharest Stock Exchange over the last few years, Transgaz Media[ (TGN) and Transelectrica Bucure[ti (TEL) have so far made 65.7 million RON (15.5 million euros) after subscribing 349.1 million RON (82.3 million euros) in the offerings. The gain comes from the appreciation of stock exchange shares compared with the offering price, and does not include potential dividend earnings, which in the case of Transgaz were substantial.
On the other hand, shares acquired on the stock exchange as part of the offerings conducted by private compan
