The initial public offering for Croatian oil and gas company Industrija Nafte (INA) has proved a runaway success, with the 1.7 million share transaction attracting a seven times oversubscription.
Lead managed by Merrill Lynch and RZB, the flotation involved the Croatian government selling a 17% stake at K1,690 per share – just above the midpoint of the K1,400 to K1,900 indicated range. Part of the transaction comprised an offering of global depositary receipts, which were listed on the London Stock Exchange at $303.41 per GDR.
As a result of the overwhelming demand, the stock soared 40% when it debuted on the Zagreb Stock Exchange (ZSE) in early December, hitting K2,400 within minutes of starting trading. By mid-December the shares had fallen back slightly to trade at K2,205, still a healthy premium to the issue price, however. Meanwhile, the GDRs in London were trading at $380....
