RO agribusiness company sees its private placement 15 times oversubscribed
Agroland Agribusiness, a division of Agroland Business System (AG), raised RON 6 mln (EUR 1.2 mln) through a private placement of new shares on April 15.
The offer, managed by local brokerage firm Tradeville, was oversubscribed 15 times, with total orders worth RON 90 mln (EUR 18 mln) placed by investors in less than a minute.
The company sold 225,000 new shares at RON 27 each and was valued at RON 30.4 mln (EUR 6 mln). The minimum subscription was 5,000 shares or roughly RON 135,000 (EUR 27,400).
After the successful private placement, Agroland Agribusiness will list its shares on the Bucharest Stock Exchange's AeRO market with the ticker AAB.
The high interest from investors for the company's shares came after the strong debut of its parent group on the AeRO market. Agroland Business System listed its shares in early March, and the trading price on the first day was four times higher than the price paid by investors who participated in the private placement. Agroland Agribusiness was set up in 2016 and has been functioning independently since 2017.
The company sells inputs for conventional and organic agriculture and trades grain. It also runs a business incubator for agri-tech startups.
The company will use the money raised from investors to develop its business both organically and through possible mergers, acquisitions, and investments in agricultural startups.
(Photo courtesy of the company)