FP runs a public offering so as to redeem 600 million shares

Proprietatea Fund (FP) has started its public offering through which expects to redeem up to 600 million shares from the fund’s shareholders after receiving on October 10 the approval from the Financial Supervisory Authority (ASF). The price of RON1 per share established for the first public offering of this kind in Romania is RON0.28 higher than the average price reported by Bucharest Stock Exchange (BVB), being no surprise that in the first day of the offering the shareholders submitted subscription orders for almost 480 million of the shares available.

The public offering is being intermediated by BCR and Wood & Company Financial Services and was set for October 15 – November 4, but it might be extended until November 14 in case the amendment FP sent to ASF in that regard is approved.

Once the public offering is completed, the 600 million shares representing 4.35% of FP’s capital are going to be annulled and its capital, reduced with the amount equivalent to the book value of those shares. According to the offering documentation submitted to ASF, FP holds only 4.05% of the total shares, while Manchester Securities Corp. (its largest sharholder) has a percentage of 15%, the rest being owned by other shareholders. The acquisition of shares is part of the redemption plan approved by the Extraordinary General Meeting of Shareholders from April 25, 2012 concerning the capital reduction.