Romanian farm supply retailer Agroland raises EUR 1.6 mln by private placement
Romanian company Agroland Business System, which operates the largest farm supply store chain in the country, has concluded its private placement of shares on the Bucharest Stock Exchange in just one day after drawing high interest from local investors.
The investors placed orders for a total of 8.56 million shares worth RON 38.5 million (EUR 7.9 mln), 4.85 times more than the company put up for sale, Ziarul Financiar reported.
In the end, the company sold 1.765 million shares at RON 4.5 per share, raising almost RON 8 mln (EUR 1.6 mln), which gives it a valuation of some EUR 10 million.
The minimum subscription amounted to RON 99,000 (over EUR 20,000), the equivalent of 22,000 shares. The company plans to list its shares by the end of the year.
The private placement of shares took place eight months after the company raised RON 8.1 million (EUR 1.67 mln) through a corporate bond offer. The company used part of the money to develop a new store concept, Agroland MEGA, which addresses both traditional and high-income customers.
Agroland is the biggest retailer of farm supplies in Romania, with 250 shops throughout the country and 400,000 unique customers per year. In 2019, the company recorded a turnover of EUR 30 million.
The company's founder is local entrepreneur Horia Cardos.
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