Romanian smartphone producer iHunt plans bond issue to finance expansion
Romanian company iHunt, which produces rugged smartphones and smartwatches under its own brand, plans to issue RON 7 million (EUR 1.44 mln) bonds to capitalize on growing demand and expand in Hungary and Bulgaria.
The company is listed on the Bucharest Stock Exchange, where its market capitalization is RON 14 mln (EUR 2.88 mln).
The new funds will be used as working capital to increase the inventory amid growing demand and for the company's expansion on the two foreign markets.
"This helps us enter even more aggressively on the Hungarian and Bulgarian markets, where we sold 300% more in the first part of 2020 compared to the similar period of 2019. The iHunt brand is enjoying growing popularity, and we need to increase production," said Cezar Cătălin Stroe, the majority shareholder and head of iHunt, Profit.ro reported.
The non-convertible, unsecured bonds will carry a coupon of up to 9% per year payable quarterly or semi-annually. The issuer wants a buyback option so that it can redeem the bonds depending on the cash flow.
In the first half of the year, the company's revenues rose by 52% year-on-year to RON 14.73 mln (EUR 3 mln). It reported RON 1.88 mln net profit, compared to RON 0.61 mln loss in the first half last year.
The company estimates that it is the market leader in Romania for the range of rugged smartphones and has an increasing share in the affordable entry-level segment. It targets maintaining the lowest price for given technical specifications.
(Photo source: Facebook/iHunt)