Romania will help Moldova accelerate the listing of Moldova's largest bank, maib, on the Bucharest Stock Exchange.
Romanian Prime Minister Marcel Ciolacu announced this while speaking at the Moldova - România: Capital Bridges Forum in Bucharest. He said that maib, Moldova's largest bank, has announced that it is ready to be listed on the Bucharest Stock Exchange and is waiting for legislative changes that will allow it to take this strategic step. "We offer all the necessary legislative support to the Moldovan government to speed up this process," the Romanian Prime Minister emphasized. According to him, the Bucharest Stock Exchange is currently a mature and fast-growing institution and has already proved to be an ideal platform for launching many successful Romanian companies, and Romania is ready to play the same role for first-class Moldovan companies. "As long as the Moldovan stock market is not growing and lacks liquidity, we offer you this major chance. It is, if you like, an economic label of access to capital that we provide to real partners. I am convinced that both the Moldovan authorities and all big entrepreneurs from Moldova realize the advantages of becoming beneficiaries of the infrastructure and knowledge accumulated by the professionals of the Bucharest Stock Exchange. And I hope that they will take full advantage of this opportunity," said Marcel Ciolacu. According to him, it is enough to see the impact of the listing of Hidroelectrica's shares last year to realize the huge potential of the Bucharest Stock Exchange at this moment. The Romanian Prime Minister noted the importance of choosing the right timing for the listing. He also called to be inspired by the success of the famous company from Moldova Purcari, which was also listed on the Bucharest Stock Exchange, not only because it produces very good wines, but also because it is an example of a business that knew how to develop organically. And by listing on the Bucharest Stock Exchange, it was also able to communicate more and better with the Romanian consumer. "The company has found the perfect platform to become an important name on the Romanian and international market. This is the right way to be extended to as many companies in Moldova as possible. In fact, the capital market represents an important pillar of the economic relationship between the two countries. We have the energy sector, where this connection is already working with great intensity and which proved to be really vital for Moldova last year," Marcel Ciolacu emphasized. According to him, with everything Romania does, it wants to help Moldova make big and confident steps towards closer ties with the European Union. "We help with the leading Romanian specialists who work today in key positions in Moldova, we help with large-scale investments of hundreds of millions of euros annually. We help with the volume of bilateral trade, which has tripled over the last decade," the Romanian Prime Minister said. He noted that the time when the support meant only pleasant words and bridges made of flowers has passed. "Now is the time of bridges of iron and concrete, doubled trade bridges and bridges of capital, budgetary investments and projects with clearly defined economic effects. And the Bucharest Stock Exchange is a place where facts and figures speak for themselves. It is a national resource, created with great effort, which today we make available to our brothers. Because this is what a real family does when asked for help," the Romanian Prime Minister emphasized. He expressed gratitude to everyone and wished that they would be together again the next time another Moldovan company is listed on the Bucharest Stock Exchange. As previously reported, Moldova's largest bank maib was forced to postpone its plans to list on the Bucharest Stock Exchange. As it was noted in the materials of the annual financial statements published by the bank, at the moment some provisions of the current Moldovan legislation make such listing impossible. The report said that one of maib's strategic goals is to list on the international stock exchange. In December 2022, maib shareholders voted to authorize the listing of maib shares on the Bucharest Stock Exchange. It is emphasized that maib is implementing a transformational strategy, focusing on the quality of customer service and digital offerings, aligning its corporate governance and investor disclosure with international best practices. A preliminary assessment of Romanian and international equity investors showed a high level of interest in maib's listing and support from the Bucharest Stock Exchange. "However, at the moment, some provisions of the current Moldovan legislation make listing impossible. In particular, they concern the 1% shareholding approval threshold and the requirement to notify any number of shares purchased, as well as some other smaller provisions. These specific provisions of the law restrict liquidity in the open market and make a potential listing unattractive to international portfolio investors for whom market liquidity is imperative. While the restrictions will not be lifted in the near future, maib continues to work with all stakeholders to modify these provisions of the law while ensuring that the stability of the Moldovan banking system is maintained. The timing of the listing will be adjusted accordingly and communicated in due course," maib said in a report. It should be noted that maib is the largest bank in Moldova, is of systemic importance and serves almost one third of the country's population. In 2023, maib's net profit amounted to 1 billion 249.3 million lei (63.6 million euros), up by 10% compared to 2022. The bank's total assets at the end of 2023 reached 52.34 billion lei (equivalent to 2.7 billion euros), up by 21.3% year-on-year. // 27.03.2024 - InfoMarket.
