Romania to List New Companies on Stock Exchange

Facing a pressing need to raise cash, the centre-left government of Prime Minister Victor Ponta plans this year and next to list more state-owned companies, mainly from the energy sector, on the Bucharest stock exchange.

The state budget could be boosted by over one billion euro from the listing of companies in which the state owns a minority stake, while listing small stakes in state-owned firms would help the government raise 2.2 billion euros, according to estimates.

Under privatisation plans agreed with the IMF, Romania has agreed to sell minority stakes in key energy and transport companies, including oil and gas firm OMV Petrom, power utilities E.ON and Enel and others.

It also aims to list small stakes in hydropower producer Hidroelectrica, the Bucharest airport operator, the Black Sea port of Constanta and salt monopoly Salrom.

Among the companies that are already listed, but whose free float could be raised, are energy firms Romgaz and Nuclearelectrica, the government has also said.

Romania is in the process of selling off stakes in several state-owned companies. Progress has been patchy, however.

Lengthy delays have dogged the sale of companies such as rail freight operator CFR Marfa, postal company Posta Romana and petrochemicals company Oltchim.