RO BPA firm Connections Consult lists shares 12% below private placement price

After a RON 10 mln (EUR 2 mln) private placement that valued it at RON 74.6 mln (EUR 15 mln) in the summer, the shares of software and BPA solutions producer Connections Consult were listed at Bucharest Stock Exchange (BVB) at a price 11% lower.

Among a risk-averse climate, with the US stock indices 3-4% below highs and imminent rate hikes, investors no longer showed the same bullish sentiment they showed in the case of previous listings on the Romanian alternative market AeRO.

Listed on September 22, the shares of Connections Consulting (CC), specialized in software development and business process automation (BPA), ended being traded at a lower price compared to the private placement concluded in mid-July.

By noon, the company's shares dropped to RON 61.0, 11.6% below RON 69.00 in the private placement. At this price, the company's market capitalization is RON 66 mln (EUR 13.2 mln or USD 15.6 mln).

The price reflects growth expectations for the company, which already has a presence in Bulgaria and Serbia, but aims to expand internationally.

"We are trying to move towards the global market. We plan to open a subsidiary in the United States," says Bogdan Florea, founder and general manager of Connections Consulting, quoted by Profit.ro.

(Photo: Octav Ganea/ Inquam Photos)