Financial Supervision Commission in Romania (ASF) approved a regulation number 16/2014, which establishes that the company already listed on the Bucharest Stock Exchange can have shares listed on another stock exchange through financial instruments known as certificates of deposit.
Pending the approval of the Regulation, the issue of financial certificates (ang. GDR) was possible only for the company’s shares, which had to be admitted to trading on the stock exchange.
GDR issuance was used to the initial public offering of Romgaz and Electrica, which were introduced to trading on the London Stock Exchange in order to attract foreign investors. Currently, about 10% of the Electrica’s capital is owned by foreign investors in the form of certificates of deposit, listed on the London Stock Exchange and issued by a US bank Bank of New York Mellon. About 20% of the shares to sale in Electrica offer for 1.9 million lei were bought by foreign institutional investors through certificates of deposit.
Sources: zf.ro, bursa.roTags: asf, electrica, GDR, romgaz