Romanian organic fertilizers producer raises EUR 1.5 mln in 8 hours
Romanian organic fertilizers producer Norofert, controlled by Romanian entrepreneur Vlad Popescu and his family, successfully closed the private placement offer for its shares on July 18 managing to raise EUR 1.5 million from investors in just 8 hours. This makes the Norofert placement the fastest private offer to take place on the Bucharest Stock Exchange in recent history.
The intermediaries to the transaction were local brokerage firms Goldring and Tradeville, while Cornerstone Communications managed the company’s investor relations and NNDKP provided legal counseling.
The company put for sale 712,500 new shares in the placement, representing a 35.5% stake. The offer was initially supposed to run between July 18 and August 18, but because of the oversubscription, it was closed within 8 hours as the company managed to attract the amount of EUR 1.5 million from 71 investors.
The company aims to have its shares listed on the AeRO market of the Bucharest Stock Exchange in September 2019. It will thus become the first-ever agricultural and agro-tech company listed on the Bucharest Stock Exchange.
In 2018, Norofert Group has recorded consolidated revenues of estimated RON 10 million (EUR 2.15 mln), an increase of 92% compared to 2017, and a net profit of RON 4 million (EUR 0.86 mln). For 2019, in line with the information presented in the offering document, the company aims to reach revenues of RON 15 million and a profit of RON 6 million. The main driver for the increased revenues will be a new line of fertilizers for conventional farming, which the company developed in the past months and plans to begin selling starting from September this year.
(Photo source: Pexels.com)