KPMG: IPOs will increase

Initial public offerings (IPOs) for the sale of shares will surge in the near future, despite being in the early stages of development in Romania, reads a survey by KPMG, one of the largest consultancy and audit service companies in the world. The increasing interest in floatations on the capital market is chiefly connected to Romania”s upcoming accession to the European Union, KPMG says, meaning that Romanian companies will need larger financial resources in order to cope with the pressures of competition on the European market. “It is much cheaper to raise funding from the capital market than to go to the bank and get the money needed to grow your company,” said Victor Kevehazi, senior partner at KPMG Romania. Although floatation on the stock market is considered a lengthy and extremely demanding process, KPMG officials say the benefits far outweigh the disadvantages and costs entailed. ZF