Romgaz Plans To Launch IPO; To Sell Up To 15% Of Shares

S.N.G.N. Romgaz SA, Romania's largest natural gas producer and supplier, announced Friday that it plans to launch an Initial Public Offering of existing ordinary shares in the Company and Global Depositary Receipts or GDRs representing interests in the Shares, following the approval of the prospectus by the Romanian Financial Supervision Authority. The Initial Public Offering is a part of the Romanian Government's Privatisation strategy.

The company said IPO will comprise an offer of up to 15% of existing shares in the form of Offer Shares and GDRs held by the Ministry of Economy of Romania, acting through the Department of Energy.

The firm said that Offering will be made to institutional and retail investors in Romania and to qualified international institutional investors outside the United States and to certain qualified institutional buyers in the United States.

The Offering is expected to be completed by the end of 2013, subject to market conditions.

The offering is expected to comprise existing shares to be offered by the Department of Energy, on behalf of the Ministry of Economy of Romania.

Romgaz said it intends to apply for the admission of the Shares to trading on the Bucharest Stock Exchange and for the GDRs to be admitted to listing to the standard segment of the Official List of the United Kingdom Listing Authority and to trading on the regulated market of the London Stock Exchange. It will file the prospectus with the Romanian Financial Supervision Authority for approval, before initiating the offering.

Following the Offering the Ministry of Economy will hold at least a 70% interest in the Company's shares. SC Fondul Proprietatea will maintain its existing holding of a 15% interest in the Company's shares and public free float will comprise the remaining shares.

According to the National Regulatory Authority in the Energy Sector, in 2012, Romgaz had a share of 50.1% of domestic natural gas production and it supplied 41.7% of Romania's natural gas consumption.

Romgaz posted EBITDA of RON 1.1 billion or $342 million in the first six months of 2013 compared to RON 1.2 billion or $371 million in the first six months of 2012.

Goldman Sachs International and Erste Group Bank AG have been appointed as Joint Global Coordinators and Joint Bookrunners for the Offering. Banca Comerciala Romana SA and SSIF Raiffeisen Capital & Investment SA have been appointed as Domestic Lead Managers.

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