Electrica, key player in the electricity distribution and supply market in Romania, as well as one of the most important players in the energy services sector, will benefit as of September 30, 2020, from the issuer’s market-making services provided by WOOD & Company Financial Services, leading investment bank in Emerging Europe.
“We are glad that Romanian capital market upgrade to Emerging Market status has determined a greater interest of companies to improve their shares liquidity. This partnership between Electrica and WOOD & Company Financial Services is auspicious for both parties involved, but also for investors. The company’s high attention to improving its shares liquidity makes us happy even more as we must consider the fact that Electrica is also listed on the London Stock Exchange, the shares being packaged as GDRs. Electrica shares are already one of BVB’s most liquid shares, and an improved liquidity may increase its chances of being included in the FTSE Russell indices for Emerging Markets,” stated Radu Hanga, Chairman of the Board of Governors, Bucharest Stock Exchange.
“Electrica is one of the pillars of the Romanian economy, it is a strategic Group, formed by companies strong both operationally and financially. Electrica Group’s Strategy is to ensure a balance between creating long-term value and maximizing profit for investors. In this respect, by concluding the contract of market making services with WOOD, we want to ensure increased liquidity of our shares and lower share price volatility, in order to be able to be able to maintain a high return for investors. Particularly as Romania was promoted to the status of Emerging Market, we believe that this partnership can bring significant benefits to both existing investors, while being also a good opportunity to attract other shareholders. And every step forward towards implementing the strategy can only prove our consistency, coherence, and involvement for sustainable development, with benefits for all stakeholders,” said Corina Popescu, CEO, Electrica.
The Issuer’s Market Maker (IMM) activity will be provided by WOOD & Company Financial Services based on a contract signed with Electrica.
“WOOD & Company is delighted to become Issuer Market Maker for Electrica. This is the first time we will be presented in the market on two levels. We hope this set up will increase overall market depth and will be positive for the stock liquidity and total turnover,” said Josef Kohout, Head of Trading Prague, WOOD & Company Financial Services.
“An improved liquidity of the shares is a plus for any listed company when it wants to attract new investors. Electrica is one of the companies highly active in attracting new investors in their shareholding structure and together with which BVB participated in numerous external roadshows to promote the Romanian capital market among international investors. We already have five companies that use this Issuer’s Market Maker service, launched by BVB a year ago precisely to improve the liquidity of the shares of listed companies,” said Adrian Tanase, CEO, Bucharest Stock Exchange.
Electrica shares registered a turnover of almost RON 420mn in 2019 at BVB, meaning a 4.3% market share, ranking the 6th place in terms of liquidity. Electrica shares are included in almost all BVB indices, respectively in BET, BET-TR, BET-XT, BET-XT-TR, BETPlus, BET-NG, BET- BK and ROTX.
The IMM is the participant in the BVB’s trading system that has taken on the role of sustaining the liquidity of a financial instrument, based on a contract concluded with the issuer of the respective financial instruments, as well as with BVB.