A group of minority shareholders of AAGES Targu Mures, a Romanian company that specializes in designing and manufacturing induction heating machines for large range of applications, managed to raise EUR 1.2 million from the Bucharest Stock Exchange (BVB) last week.

The shareholders sold a 15% stake in the company via an initial public offering (IPO).

The IPO’s intermediary, local brokerage house Goldring, decided to close the offering after just two days because of the high subscriptions. The demand was almost three times higher than the number of shares put for sale.

The company’s shareholders sold 1.5 million shares at a maximum price of RON 3.9 per share. However, the investors will only pay RON 3.705 per share as they benefit from a 5% discount for early subscriptions.

The IPO valued the whole company at some EUR 8.6 million.

AAGES Targu Mures had a turnover of EUR 5.2 million and a net profit of EUR 0.7 million in 2016, according to its listing prospectus.

editor@romania-insider.com