ANNUAL REPORT OF “TRANSGAZ” MANAGEMENT INDIVIDUAL ...

SNTGN “TRANSGAZ” SA Medias Annual Management Report for 2007
CH. 3. THE MARKET OF THE SECURITIES ISSUED BY TRANSGAZ
Transgaz is the second state-owned company of the utility sector. In order to achieve
the strategic objectives specified in the governmental programme “A Strong Market” –
“Capital Market Development”, Transgaz promoted a primary initial public offering
for sales of stock, i.e. 10% of the increased share capital, as provided by GD
no.1329/2004 on the proxy of the involved public institution and on the approval of
the public offering privatization strategy of companies included in the portfolio of the
Ministry of Economy and Commerce, amended by GD no. 708/2005.
In the context of the capital market development, the listing of the sole Romanian gas
transmission operator on the Bucharest Stock Exchange proved to be a strategic
decision, of great importance both for the company’s prospects and for stock exchange
capitalization increase.
The company’s being traded on the regulated market managed by the Bucharest Stock
Exchange is an acknowledgement of its efficiency, significance and role played in the
domestic and international business environment and also an additional safe sorce for
the financing of the investment programmes and for the company’s development.
The IPO developed during November 26 th , 2007 - December 7 th , 2007 was endorsed
by the Romanian National Securities Commission under Decision no. 2199/14.11.2007
and Decision no. 2266/21.12.2007 and was executed pursuant to the capital market
legislation.
The IPO turned into a great success for the Romanian capital market from the
following points of view:
IPO with the highest value of the offering exposed for sale;
IPO with the heaviest stock demand of Romania;
The first IPO in Romania, with a new financial instrument attached thereto, i.e. the
so-called “allocation rights”.
3.1. Features and growth of the securities issued by Transgaz on the regulated
market managed by the Bucharest Stock Exchange
Given the fact that such event has set a record in the company’s history, the IPO
balance sheet illustrates data and information related to the securities issued by the
company, as follows:
• Transgaz’ IPO was the first IPO in the history of Bucharest Stock Exchange to
trade allocation rights, thus allowing investors to trade such rights prior to the start
of the actual share transactions, the conversion ratio being 1 right to 1 share;
• The number of shares exposed for sale through Public Offering was of 1,177,384
shares, standing for 10% of the increased share capital;
• Price of shares: lei 191.92 /share;
• Total value of the shares exposed for sale: lei 225,963,537.28 ~ Є 65 million;
• Subscription period: November 26 th , 2007 – December 7 th , 2007;
• Subscription tranches: high subscription tranch - 60% of the offering- any
subscription of over lei 500,000 and low subscription tranch - 40% of the
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