Major Romanian water transport operator TTS prepares to sell 50% stake in IPO

Transport Trade Services (TTS), a major Romanian provider of integrated inland water transport and logistics services, intends to launch an Initial Public Offer (IPO) to sell up to 15 mln existing shares, representing up to 50% of the company's capital, Bursareported.

The shares will be listed on the main market of the Bucharest Stock Exchange (BVB), the carrier announced.

The offer will have two tranches: one for retail investors (2.25 mln shares) and one for institutional investors (12.75 mln shares).

The company expects the offer to be launched in the last part of May, subject to market conditions and the approval of the prospectus by the Financial Supervisory Authority (FSA).

TTS together with its subsidiaries (TTS Group) operate in the integrated logistics services segment of the Danube basin, providing freight forwarding, river transport, port operations especially for cereals, minerals, and chemicals, as well as and other related and auxiliary activities.

In 2020, TTS Group was responsible for about 30% of the traffic on the Danube in terms of volumes transported, capacity, and size of its own fleet.

Last year, TTS Group recorded a turnover of RON 520 mln (EUR 109 mln), 36% higher than in the year before. Its net profit soared by 70% year-on-year to RON 48 mln (EUR 10 mln).

International Finance Corporation (IFC), World Bank’s investment division, became a shareholder in the group of companies 9 years ago, with a capital contribution of EUR 12 mln. In September 2017, IFC sold a 6% stake in TTS for almost EUR 9.4 mln.

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