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The Romanian state-run aircraft repair and maintenance company IAR Brasov (IARV) rang the opening bell at Bucharest Stock Exchange (BVB), on July 14, marking its debut on BVB Main Market.
“IAR Brasov is the second company that moves from Rasdaq to the Main Market of BVB this year. Now investors have new opportunities for trade and for investing their money. It is an enrichment for us and I am sure that the company will be even more visible for investors when being listed on the Main Market”, stated Ludwik Sobolewski, BVB CEO.
Neculai Banea, IAR Brasov CEO, mentioned the company’s debut on BVB’s Main Market marks the beginning of a new stage in IAR’s life, as well as the completion of its’ product offer with its own shares.
“As we are used to give a special attention to each of our products and the services we provide, we will act to increase the market value of our company shares so that the main advantage offered by listing of our company on the Bucharest Stock Exchange, meaning attracting financing with low costs, to become an important leverage in the company’s development. We assure our shareholders and potential investors that we will fulfill our obligations as a company listed on the regulated market in terms of constant communication, accurate and complete, or publishing periodic or current reports, updated information posted on the company website, transparency and everything related to good capital market practices”, said IAR Brasov CEO.
"Beyond that it is a high-tech company and maybe the only in Romania, it is a company of strategic importance and we are happy to open it up to investors, both to retail and the funds. The company has a good free-float. Since the GSM decision for listing on the regulated market and up to date, the company's capitalization has increased from EUR 8mn to 20mn, which says something, in a period of three months", said Octavian Dragolea, IFB Finwest representative, the brokerage house that assisted the transfer to the Main Market.
Since the GSM decision to transfer on the Main Market, investors traded more than 725,000 IAR shares, representing almost 4% of all company’s shares, for more than RON 2mn. IAR shares price rose by almost 2.7 times in the mentioned period of time, reaching RON 4.71/share at the end of Monday, July 13, 2015, trading session. At the mentioned price, IAR has a market capitalization of almost RON 89mn (EUR 20mn).
“I believe IAR is likely to follow the success of other companies that were transferred from Rasdaq on the Main Market. I think the Main Market is the main destination for companies seeking to increase their value, having a strategy, a vision”, stated Lucian Anghel, BVB Chairman of the Board.
He showed that on the Main Market there are more investors, among which pension funds which are not allowed to invest on the Rasdaq market, and a broader palette of investors and the safety provided in terms of regulation leads to increasing the company’s value.
"I wish that in the future, the Ministry of Economy and the Labour Ministry would sell part of their stakes in the company, so the state to remain the majority shareholder and the free-float to grow," said BVB Chairman.
More than 72% of IAR shares are owned by the Romanian state (Ministry of Economy, Trade and Tourism – 64.89% and Ministry of Labor, Family, Social Protection and Elderly – 7.3%) and almost 28% by investors. In the previous years, the company conducted modernization programs for IAR 330L Puma helicopters with SOCAT, NATO and Naval system, as well as SA/IAR 330 Puma helicopters in SA 330SM edition. Company’s main local customers are the Ministry of Defence, the Romanian Intelligence Service, Ministry of Internal Affairs, as well as Eurocopter Romania. On the external market, IAR’s main clients are: DGP GHQ UAE Armed Forces (United Arab Emirates), Royal Air Force of Oman (OMAN), Lebanese Air Force (Lebanon), Pakistan Army/Aviation (Pakistan) - through Aeroteh-, Indonesian Air Force (Indonesia) - through PT Citra Aviatama Dirgantara -, Airbus Helicopters (France/Germany) - through Eurocopter Romania.
