Romania Launches Gas Company IPO Before IMF Review

Romania on Tuesday launched the sale of a 15% stake in Romgaz, the largest producer of natural gas in Central Europe, seeking to raise between $425 million and $567 million.

The sale would meet one of Romania's biggest commitments to the International Monetary Fund and the European Union, made in return for 4 billion euros ($5.4 billion) in standby aid.

An IMF-EU delegation is expected to arrive in BucharestTuesday for a review of the loan agreement.

The IMF and the EU insist that the sale of big, loss-making transport and energy companies will spur economic growth, which is expected to reach 2% in 2013.

Romgaz is the largest producer and supplier of natural gas in Romania with a production of 5.66 billion cubic meters in 2012, the Bucharest stock exchange said in a press statement.

Shares in Romgaz will be sold at a price ranging from 24 lei to 32 lei ($7.4 - $9.9) at the Bucharest and London stock exchange.

In September, the center-left government sold a 10% stake in the nuclear energy producer Nuclearelectrica, raising $86 million.

(DowJones)