Flamingo managers cash in on their profits

Some of the managers of the IT&C holding Flamingo International have recently sold their stakes, thus cashing in on their profits from the floatation of this company.

Anca Liana Barbu, one of the members of Flamingo”s Board of Directors yesterday reported the sale of a stake worth around 418,000 RON (some 115,000 euros), accounting for 0.18% in the increased share capital of the company. She is one of the managers of Flamingo, who owned shares prior to the listing on the Bucharest Stock Exchange.

“I sold the Flamingo shares to cover some immediate personal needs. As can be noticed from the filing with the BSE, these shares account for less than 1/10 of my stake in Flamingo,” Anca Barbu told Ziarul Financiar. She added she was not considering further stock sales at the moment.

She also sold 176,000 RON (47,000 euro) worth of shares about a month ago. Also a month ago, Simona Iolanda Varga, another member of Flamingo”s Board of Directors sold a stake for which she collected 594,000 RON (162,000 euros). Smaller stakes were also sold by Valentin Barbu, also in the position of an insider. The stakes sold by Flamingo”s managers account for approximately 0.54% in the share capital of the company. They bought Flamingo shares prior to their listing at a price equal to the par value of 0.1 RON/share.

The majority shareholder of Flamingo is Dragos Cinca, one of the company”s founders who owns 61.5% in it.

The trend followed by Flamingo shares on the Bucharest Stock Exchange has not lived up to the expectations of investors, after the initial public offering was considered a success. Flamingo International was floated by an IPO worth 12.5 million euros, carried out at the end of May. Subscription requests from investors were 3.7 times higher than the shares offered by Flamingo, with the subscription price set at 2.4 RON/share.

After the peak of 2.76 RON/share reached on the first day of trading, which drove the company”s market value up to nearly 66 million euros, the capitalisation has not exceeded this high point.

Flamingo closed at 0.452 RON yesterday, down 1.7 % from the previous session, with the capitalisation (including the capital increase) amounting to 64.7 million euros.

Flamingo posted 47 million euros in turnover in the first nine months, up 26% on last year, and made a 20,000-euro net profit. andrei.chirileasa@zf.ro