Shares of RO cybersecurity firm Safetech soar sixfold upon listing

The shares of Romanian cybersecurity firm Safetech rose 500% on the first trading day on January 29, compared to the price in the private placement last October, putting the company's market capitalization at RON 75 million (EUR 15.4 mln).

Last fall, the two founders of the firm sold 20% of the company for RON 2.5 mln - a stake that is now worth RON 15 mln - in a private placement brokered by TradeVille.

The value of the trades on the first day was RON 8.9 mln, which makes Safetech the best debut for an entrepreneurial company in terms of liquidity.

"The Bucharest Stock Exchange remains at the center of our strategy for the coming years. We have ambitious plans for the future, and we are convinced that, following today's listing, we will be able to grow at an even faster pace, offering the highest quality cybersecurity solutions to Romanian companies," said Safetech co-founder and CEO Victor Gansac.

Under the listing documents, the company estimated EBITDA of RON 3.3 mln (EUR 0.68 mln) in 2020 and RON 3.8 mln (EUR 0.77 mln) this year - but the company's representatives said that last year's results (to be released on February 22) were better and this year's forecast will consequently be revised upward.

Speaking of the bottom line, the company estimated RON 2 mln net profit for 2020 to rise at RON 2.5 mln this year. Such profits would be backed by RON 12.7 mln revenues last year and RON 13.9 mln in 2021.

(Photo: Maximusnd/ Dreamstime)