AdePlast’s IPO failed

AdePlast’s initial public offering (IPO) for listing on the Bucharest Stock Exchange (BVB), the first one run by a private company over the past five years, failed since the minimum thresehold of the shares the construction company offered for subscription has not been reached. In order for the IPO to be successfully completed, there should have been subscribed at least 70% of the shares available, however, that condition was not met yesterday, when the IPO closed, shows a statement its intermediaries, BCR and Intercapital Invest, issued towards BVB.

’The public offering for selling the AdePlast shares, run within October 2 – 15 has not been successfully completed, as the minimum amount of subscription needed for concluding it with success was not reached. The amounts subscribed by investors in the offering are going to be returned according to the provisions of the offering.’ states the release in question.

The retail offer was, however, subscribed more than 100%, a positive aspect considering the failure in carrying out the IPO as planned said Marcel Barbut, CEO at AdePlast, as per a company release: ‘With this step, our IPO, the first one after a five-year drought, we’ve noticed interest from the public in the stock market activity. It would be useful for the entire capital market if the decision-makers in this area facilitated the access towards the stock market activity for a much wider public. I mean the companies, on one hand and retailers, on the other.’

Barbut considers that at this point the stock market cannot be viewed as a reliable financing source for private companies in Romania:‘We were ready for the stock market, but it seems that the stock market was not ready for AdePlast. Unfortunately I think we haven’t reached yet the point when the stock market can be a viable option for financing private companies in Romania’.

AdePlast which is the Romanian market leader in the construction field reported a 40% increase in its turnover within the first nine month this year and expects to maintain a growing path by the end of 2013, remaining a company with an important development potential in the region.