Cris-Tim IPO at Bucharest Exchange closes at minimum of target price range

The initial public offering organized by Romanian cold cuts and ready-made meals producer Cris-Tim at Bucharest Exchange ended on October 29 at the lowest end of the target range envisaged by the issuer, namely RON 16.5 per share, according to Profit.ro.

The final price would result in a post-IPO company valuation of RON 1.27 billion (EUR 250 million).

The new shareholders will hold a total of 35% of the company's shares.

Under the IPO, Cyprus-based vehicle controlled by the Cris-Tim founders Radu Timis and Cristiana Teodora Timis, which holds 99.9% in Cris-Tim, sold 20.9 million shares (29.5% of the pre-IPO number of shares), and Cris-Tim issued 6.2 million new shares – resulting in a total of 27.1 million shares for sale under the IPO.

The IPO closed with an oversubscription level particularly on the retail investors' segment (15% of total IPO initially, subject to possible increase to 20% by over-allocation from the founding members' stake) but at the same time the investment funds showed moderation for a company that is listed at a level of approximately 14 for the P/E indicator adjusted for the last quarters and 8 times the pre-tax EBITDA profit of RON 166.81 million in 2024. Even though the price remained at the lowest possible level, the IPO closed with a 100% allocation.

Economedia.ro said that two investors subscribed 5-6 million shares each, which is almost the entire share capital increase (6.2 million shares). Also, a number of investors subscribed to the offer using leverage, meaning by borrowing money from the brokerage divisions of banks, a strategy that contributed to the higher subscription volume on the retail investors' segment. For this reason, an oversubscription spiral was created on the retail tranche.

(Photo source: Facebook/Cris-Tim)