Don't be afraid of the Stock Exchange

The managers of companies who decided in the past few years to get the company listed on the Stock Exchange say the fears of Romanian entrepreneurs related to opening their businesses up to the public and to investors are exaggerated and that Romanians are too secretive, considering that in developed countries most medium-sized and big businesses are listed on the stock exchange.

Brokers say that, although Romanian entrepreneurs would like to attract money through the Stock Exchange, when they hear about transparency requirements, many change their minds. “There are so many listed companies in the world that are doing very well. I think we are over-secretive and people exaggerate a bit. I don’t know of any concrete cases where information published on the Stock Exchange affects a company’s activity. The only difference is there are more reports to draw up,” says Emanoil Viciu, chairman of Teraplast Bistri]a (TRP), the last company to get listed on the Stock Exchange in 2008 through an initial public offering which helped it raise around 50 million lei (15.6 million euros).

The managers also say the requirements of the capital market as far as transparency and Stock Exchange investors’ needs are concerned, only have to do with general information about the company, not detailed information that can, indeed, be more sensitive.