Romanian fuel distribution company JT Grup Oil plans EUR 12 mln IPO at Bucharest Exchange

Romanian independent fuel distribution company JT Grup Oil initiated the procedures and announced plans to carry out a public offering (IPO) by which 10 million new shares worth EUR 12 million and accounting for 28.5% of its capital would be followed by the listing of its shares at Bucharest Exchange (BVB), according to still incomplete data provided by Ziarul Financiar quoting the company's CEO Jean Paul Tucan.

The IPO announcement comes after Premier Energy announced a similar step, by which it envisages raising EUR 25 million.

The shares of JT Grup Oil would be listed on the alternative market AeRO of the Stock Exchange.

The company, an independent fuel distribution company in Romania, recently completed the first stage of a planned EUR 25 million terminal for oil products in Constanta port.

The company's turnover dropped by about a quarter to EUR 45 million in 2023 from EUR 60 million in 2022, while the net profit edged down marginally to EUR 1.15 million from EUR 1.27 million.

"JT Terminal will be the most modern liquid petroleum products terminal in the Black Sea, offering storage and handling space for specific products such as diesel, biodiesel, bitumen, and other liquid products with the final purpose of distributing them on the domestic and international fuel markets," said local entrepreneur Jean Paul Tucan, the majority shareholder and CEP of JT Grup Oil, announcing the oil terminal investment earlier in March.

The company completed the infrastructure works with the help of a EUR 11 million grant under the EU's Large Infrastructure Operational Programme (LIOP).

"The company's shareholders decided to increase the share capital by issuing 10 million shares, with a nominal value of RON 1, which will be made available to the public through an initial public offer, followed by admission to trading of the company's shares on the Multilateral Trading System, on the AeRO market of the BVB," Jean Paul Tucan told Ziarul Financiar.

"Through this operation of attracting capital from investors, we want to give the public 28.5% of the company's share capital," Tucan also said.

"Following the listing, which would also come after a capital increase, the existing capitalization would increase by EUR 12 million, to EUR 14 million, said the majority shareholder Jean Paul Tucan," the daily reported.

JT Grup Oil, founded in 2001, carries out fuel distribution operations in the southeast area of Romania with the help of its fleet of 11 tankers with a capacity of up to 40,000 liters equipped with pumps and indicators for measuring the delivered quantity. For fuel distribution in the northern part of the country, the company has partnerships with long-term collaborators.