Through the size of its assets and portfolio, Fondul Proprietatea (FP) is unique in the CEE region, being among the most highly expected floatations in the history of the domestic capital market.
The 3,5bn-euro assets, along with the portfolio made up of
stakes in the most valuable companies in the Romanian economy, have
brought FP into the spotlight not only of investors, but also of
stock exchanges in the region, with each of them trying to be part
in one way or another in one of the most valuable companies in the
region.
The first listing of the Fund will be on the BSE, an event expected
to happen in the first half of 2011, as the officials of Franklin
Templeton, which manages the Fund, have pledged. “For a fair stock
price and adequate liquidity”, Franklin Templeton wants a secondary
floatation of the Fund on the LSE.
In the opinion of Michael Buhl, a joint CEO of the Vienna Stock
Exchange, the London market would not be the best choice for a
secondary listing.
“(…) As for a secondary listing, I believe the Vienna Stock
Exchange is an obvious choice for FP. The Vienna Stock Exchange has
specialised investors, who know the region and have a high interest
in the CEE, while in London a broader range of investors are
trading, with a large part of them focusing, however, on global
companies, large corporations with international operations. I
believe FP risks being lost among large corporations should it be
listed in London”.