Romsar Cosmetics, importer and dealer of cosmetics, pharmaceuticals and household cleaning products held by the Greece-based Sarantis Group, is planning to have its stock traded on the Bucharest Stock Exchange.
The operation will entail the share capital increase, with the shares to be sold by an initial public offering and only then will Romsar be listed on the Stock Exchange. The funds collected from the increase will be invested in the distribution network.
Constantin Tudorache, the company's executive manager, feels Romsar being listed on the Stock Exchange will lead to more transparency, more responsibility towards the investors' money and a very aggressive development plan.
"We have very concrete investment plans for expanding our distribution capacity over the next three years," he specified.
Tudorache says they want to go public because "this is a good moment, in terms of Romanian economic environment, which has become more stable, the investors have more courage to invest and Romania's ratings are getting better."
Romsar is in talks with Alpha Finance brokerage company to work out the details for the listing on the Stock Exchange. "We felt Alpha Finance was the best choice because it has successfully handled the floatation of Banca Romana de Dezvoltare (Romanian Development Bank - BRD).
Alpha Finance was even more successful in handling another such operation, namely the listing of M.J. Maillis Company, as the offering was oversubscribed."
Alpha Finance is held by a Greek group bearing the same name. Romsar's share capital amounts to five million dollars.
Romsar is a subsidiary of the Greece-based Sarantis Company, which holds every single share issued by Romsar Cosmetics, either directly or indirectly by affiliates. Sarantis Company produces and distributes cosmetics, pharmaceuticals and household cleaning products.
Romsar Cosmetics this year has concluded two new partnerships to be the sole dealer of the Johson&Johnson (USA) and Puig Beauty & Fashion (Spain) products in Romania. Following the conclusion of the partnerships, Romsar estimates its turnover to go up some fifty percent compared with 2000. The company's turnover last year reached 11.1 million dollars.
More and more Greek-held Romanian companies are interested in being listed on the Bucharest Stock Exchange. The first of them was M.J. Maillis, with Intrarom telecommunications company currently working on its plans to go public.
