Intercapital Launches the IPO of iFond Financial

Intercapital Invest announces the launch of the Initial Public Offering of iFond Financial Romania, an exchange-listed financial sector fund investing on the Romanian Market. The main features of the fund are listed below:

• iFond Financial offers access to shares of the Property Fund (Fondul Proprietatea), one of the largest investment funds in the region, currently traded only OTC. iFond Financial intends to invest 50% of its assets in Property Fund shares.


• The remainder 50% of the fund's assets are placed in financial services issuers traded in Romania: the five Financial Investment Companies (Societati de Investitii Financiare or SIFs) traded on the Bucharest Stock Exchange (BSE), shares issued by the Romanian exchanges, Bucharest Stock Exchange and Sibex, shares of Romanian traded banks and other financial services issuers.


• The fund will be admitted to trading on the BSE following the closing of its IPO, which takes place between 22 July and 11 August.


• The fund's IPO is underwritten by Intercapital Invest so that investors do not bear the risk of an unsuccessful closing.


• iFond Financial Romania is an original investment product of the Intercapital Group.

iFond Financial Romania is managed by Intercapital Investment Management, the asset management division of Intercapital Invest. The fund's IPO is the first initial public offering launched in Romania in 2010, after 2009 saw only two IPOs on the Romanian market, both managed by Intercapital Invest (the issuers were structured funds OTP WiseRO and OTP Green Energy).

For additional information on the fund and its IPO please see the following:

- Fund Presentation
- Summary of the Fund's Prospectus
- Fondul Proprietatea Research Report
- iFond Financial Research Report

Investment Strategy: iFond Financial Romania invests 50% of its assets in shares of the Property Fund by investing (following the Property Fund's registration as UCI of type AOPC with the National Securities Commission). The target allocation of iFond Financial following the closing of its IPO is presented below:


The Property Fund has total assets close to 3 Billion Euros, holds strategic investments in Romanian energy companies and is scheduled to be listed on the BSE by the end of the year or in early 2011. The five Financial Investment Companies (SIFs) are closed-end funds traded on the BSE that hold diversified assets including shares in Romania's top two banks. Both Property Fund and SIF shares are currently traded at around 60% discount to NAV.

iFond Financial will also invest in the shares of Romania's two exchanges. The Bucharest Stock Exchange has a market cap of 23.5 Billion Euros and trades shares in some of the most important local companies, including SIFs, Petrom - the largest Romanian oil company, national distributors of gas (Transgaz) and electricity (Transelectrica), as well as fixed-income, fund units and derivatives. Sibex has the largest derivatives market of the two and recently launched a spot market. Both exchanges are listed on their respective regulated markets.

Finally, iFond Financial will also invest in shares of BRD - Groupe Societe Generale, Romania's second largest bank, and Transilvania Bank, leading Romanian independent bank, both traded on the BSE, as well as in other financial-services listed shares or related securities.

Fund offering: the fund offers in its IPO a number of 10,000 units with a price of 202 RON each, which can be raised to a maximum of 40,000 units. The IPO is underwritten by Intercapital Invest. Fund units may be bought at offices of Intercapital Invest and BRD - Groupe Societe Generale until August 11.

The Romanian Market offers good assets at significant discounts. Invest in the Romanian Capital Market by taking part in the IPO of iFond Financial Romania! For additional information please contact us at +4021 222 8731, +4021 222 8744, by email at office@intercapital.ro or at our office in 33 Aviatorilor Blvd., 1st Floor, Sector 1, Bucharest.




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