Transgaz Secondary Public Offering starts today
The government approved the details for the Secondary Public Offering (SPO) where the Ministry of Economy, through the Office of State Participations and Privatizations in Industry, intends to sell 1,766,077 shares of SNTGN Transgaz SA (15% of the share capital). The price interval was set between RON 171 and RON 230. The offer will take place between April 4, 2013 (today) to April 16, 2013. The allocation date was set for April 17, 2013 and the transaction date for April 22, 2013 with the settlement date established for April 25, 2013. The Secondary Offer is divided into three tranches as follows (i) Institutional Investors Tranche with 85% of the offered shares; (ii) Large Subscriptions Tranche, allotted 8% of offered shares, dedicated exclusively to the investors who are not Institutional Investors and who subscribe more than 1,000 Offered Shares; and (iii) Small Subscriptions Tranche, allotted 7% of offered shares, dedicated exclusively to the investors who are not Institutional Investors and who subscribe 1,000 Offered Shares or less.
The offer price for the Institutional Investors tranche will be set as follows: if the shares subscribed in this tranche will amount to less than 150% of the number of shares allotted for the this tranche, the Offer Price shall be equal to the lowest Subscription Price; if the shares subscribed amount to more than or equal to 150% of the number of Shares allotted for this tranche, the Offer Price shall be equal to the price at which the tranche is subscribed at 150% or, if such a price does not exist, equal to the price at which the tranche is subscribed at the subscription level immediately preceding the 150% level.
The offer price for large subscriptions would be equal to the offer price from the institutional investors tranche. The offer price for small subscriptions would be equal to the offer price from the institutional investors’ tranche with a discount of 5% for the subscriptions submitted in the first three days of the offer period and 3% for the subscriptions starting the fourth day of the offer period.
Allocation would be pro-rata for small and large subscriptions tranches and based on several qualitative criteria for the institutional investors tranche.
Transgaz shares resume trading today at 9:30.
