WOOD & Company Financial Services, a.s is acting as Sole Global Coordinator and the Bookrunner for the Offer. S.S.I.F. TRADEVILLE S.A. is acting as the Retail agent for the Offer.
The IPO will take place after the approval of the offer prospectus by the Romanian Financial Supervisory Authority.
The raised funds will be used to support the envisaged growth strategy of the group.
The final free float after the Offer will depend on the number of new shares issued by the Company and the number of existing shares sold to new investors in the Offer. However, it is expected to be at least 40% if no stabilization activities are carried out. Agricover’s founder, Mr. Jabbar Kanani, who currently holds 87.269% of the share capital, will retain the majority of the Company’s shares after the Offer.
„As part of our sustainable development strategy and aligned with our ambition to define the agriculture of tomorrow, we are thrilled to announce our intention to list Agricover on the Bucharest Stock Exchange. Building on our successful 40 million euros bond issuance from 2021, our goal is to raise further capital for development and welcome new investors into our journey towards success,” stated Jabbar Kanani, Chairman of the Board of Directors at Agricover Holding.
Following the approval of the Prospectus by the FSA and the successful closing of the Offer, Agricover intends to apply for admission to trading of the shares on the regulated market operated by the Bucharest Stock Exchange.
The Group was founded in 2000 by local entrepreneur Mr. Jabbar Kanani. In 2017, the European Bank for Reconstruction and Development became a significant institutional investor in Agricover Holding S.A., currently holding 12.727% of the Company’s share capital. Additionally, in 2018, Adama Agriculture BV became a significant strategic investor in Agricover Distribution S.A., holding 10% of the subsidiary’s share capital.
Agricover registered revenues of approximately RON2.55 billion in 2022, a ca. 50% increase compared to 2021, and a consolidated net profit of approximately RON91.3 million, a ca. 7% increase compared to 2021. In 2022, Agricover continued to expand its client portfolio, providing agricultural inputs and financing to 9,949 clients, approximately one-third of whom benefited from products and/or services provided by both Agricover Distribution and Agricover Credit.
The Group has two main business segments: agricultural inputs distribution, carried out by Agricover Distribution S.A. (“Agribusiness”), and specialized financing for farmers provided by a non-banking financial institution, Agricover Credit IFN S.A. (“Agrifinance”). The two segments jointly generate most of the Group’s revenue and operating results.
At present, the main shareholders of Agricover are Jabbar Kanani, with a 87.269% stake, and EBRD, with a 12.727% stake.
(English version by Catalina Apostoiu)